Germany’s Cabinet Approves Draft Tax on Sugary Drinks
The proposal sets two levy rates based on sugar content, with the tax planned to take effect in July 2027.
Key takeaways
- The draft sets rates of 26 or 32 cents per liter based on sugar content.
- The government plans to introduce the tax on July 1, 2027.
Germany’s Cabinet has approved a draft law for a tax on sweetened drinks, with the levy planned to start on July 1, 2027. The proposal sets a rate of 26 cents per liter for drinks with 5 to 8 grams of sugar per 100 milliliters, and 32 cents for drinks with 8 grams or more.
The tax would cover products including soft drinks, sweetened fruit drinks, iced tea, energy drinks and sweetened syrups. Pure fruit and vegetable juices, drinks containing sweeteners and several other categories would be exempt. Manufacturers and wholesalers would be liable for the tax if the draft becomes law.
The government expects €690 million in additional revenue in 2027 and an annual average of €875 million to €890 million from 2028 through 2031. It plans to direct the proceeds to the health fund to help stabilize statutory health insurance contributions.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
