German coalition reaches agreement on sugar tax
The cabinet intends to approve a proposal for a levy on sweetened drinks on Wednesday.
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Germany’s governing coalition has reached a compromise on a sugar tax, according to the Finance Ministry. The proposal is due to be discussed by the cabinet on Wednesday, but the precise arrangements have not yet been finalised.
The German government reached agreement on Tuesday evening on a so-called drafting aid for introducing a tax on sweetened drinks. The document is intended to help the governing parties’ parliamentary groups in the Bundestag with the further development of the plan.
According to preliminary details reported by BR24, a rate of 26 cents per litre would apply from July next year to drinks containing at least five grams of sugar per 100 millilitres. A rate of 32 cents per litre would apply to drinks containing at least eight grams. Small producers making less than one million litres a year would be exempt.
According to the same reports, the German state expects revenue of about €69 million in the first year. Those figures and thresholds are still part of a preliminary proposal. This is therefore neither an already adopted law nor yet a definitive tax regime.
A day earlier, the German government had said that internal coordination on the design was still under way. The government did confirm then that the tax itself was not under discussion, but declined to give details of the rates. Tuesday’s announcement is therefore primarily a further political step, not the full completion of the legislative process.
The plan has met resistance within the governing parties and the Länder. Nine agriculture ministers from CDU- and CSU-governed Länder asked Chancellor Friedrich Merz to abandon the levy and opt for information campaigns and voluntary measures instead. The government of Baden-Württemberg also expressed criticism.
The Association of Ersatzkassen supports the introduction, but believes the revenue should go towards prevention and the health fund. The organisation says the tax should primarily reduce the sugar content of products, rather than being used to plug the federal budget deficit.
For producers, supermarkets and the hospitality sector, the details of the scheme are particularly important. Manufacturers could choose between price rises, smaller packaging or changes to recipes. The government still has to approve the drafting aid; the parliamentary process will follow.
One story, several perspectives
What is established
- The German government has announced a compromise on a tax on sweetened drinks.
- The precise rates and exemptions have not yet been definitively established.
- Supporters link the measure to prevention; opponents advocate information campaigns and voluntary measures.
Left
Arguments Price incentives can encourage manufacturers to use less sugar and primarily protect children from an unhealthy range of products. The revenue should therefore go towards prevention and public health.
Values Collective health protection, reducing health inequalities and manufacturers’ responsibility.
Consequences The measure could improve recipes and limit future healthcare costs, but requires oversight of its implementation.
Centre
Arguments A levy may be defensible if it is simple, proportionate and demonstrably effective. The rates should be assessed and the revenue spent transparently.
Values Effectiveness, feasibility, predictability for businesses and a balance between health and affordability.
Consequences A compromise with clear thresholds could provide political stability, but the details will determine its impact.
Right
Arguments The state should be restrained in using taxes to steer consumer behaviour. Information, personal responsibility and product choice are better instruments than higher prices.
Values Freedom of choice, low burdens, subsidiarity and protecting enterprise.
Consequences A levy could make shopping more expensive, encourage cross-border purchases and place a disproportionate burden on smaller businesses.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The political step and the preliminary rates are supported by multiple freely available sources. The article makes clear that the scheme is not yet definitive.
- confirmed The German coalition announced a compromise on the sugar tax on 13 October. — BR24 reported this on the basis of information from the German Finance Ministry. source
- confirmed The cabinet was due to discuss the drafting aid on 14 October. — The source says the document was to be decided on by the cabinet the following day. source
- confirmed The preliminary rates are 26 cents from five grams and 32 cents from eight grams of sugar per 100 millilitres. — These details appear in the BR24 report and are presented as preliminary. source
- confirmed Nine agriculture ministers from the Union opposed the levy. — The German government confirmed the letter from nine state ministers. source
- confirmed The Association of Ersatzkassen wants the revenue to be used for prevention and the health fund. — This is stated in vdek’s statement of 13 October. source
Editor's note
It is certain that the coalition announced a compromise on Tuesday and intends to discuss a government document on Wednesday. The rates, exemptions and revenue figures come from preliminary reports and may still change.Sources
- Koalition legt Streit über Zuckersteuer offenbar bei — BR24
- Regierungspressekonferenz vom 12. Oktober 2026 — Bundesregierung
- Mit Zuckersteuer Prävention stärken, anstatt den Bundeshaushalt zu konsolidieren — Verband der Ersatzkassen
- Gentges gegen Zuckersteuer - Özdemir dafür — Tagesschau
More on this in Dutch media
- NRC — „duitsland suikerbelasting”
- NU.nl — „duitsland suikerbelasting”
- De Telegraaf — „duitsland suikerbelasting”