German cabinet approves sugar tax of 26 to 32 cents per liter from July 2027
Germany's government has advanced a levy on sugary drinks, with revenue meant to stabilize health insurance contributions. Parliament still has to approve it.
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Germany's cabinet on Wednesday approved draft legislation for a tax on sugar-sweetened drinks. Beverages with at least 5 grams of sugar per 100 milliliters would be taxed at 26 cents per liter, and those with 8 grams or more at 32 cents. The levy is set to take effect on July 1, 2027, pending a vote in the Bundestag.
It would cover drinks such as cola, lemonade, iced tea, energy drinks and fruit nectars with added sugar. Pure fruit and vegetable juices, milk, alcohol-free beer and drinks with artificial sweeteners are exempt. The Finance Ministry expects revenue of about 690 million euros in 2027 and about 925 million euros in 2028, money intended to keep statutory health insurance contributions stable.
Small producers making up to one million liters a year are to be exempt, subject to approval by the European Commission. The German Brewers' Association called the tax a "massive burden for consumers and businesses alike."