Sugar tax on soft drinks: CDU/CSU wants transition periods and a later start

Germany's planned sugar tax on sweetened drinks is causing friction in the governing coalition. Thorsten Frei (CDU), leader of the Union parliamentary group, is demanding changes to the bill approved by the federal cabinet last week. Frei told the Kölner Stadt-Anzeiger that Finance Minister Klingbeil's draft needs changes, Deutsches Ärzteblatt reported, citing the dpa news agency. Transition periods are needed so that drinks manufacturers can change their recipes, he said. Otherwise, he said, they faced competitive disadvantages and possibly job losses. Alexander Hoffmann, head of the CSU's group in parliament, wants the levy introduced in early 2028 rather than in July 2027 as planned.

Under the draft, drinks with at least five grams of total sugar per 100 millilitres would be taxed – such as lemonades, iced teas, energy drinks and fruit-juice drinks with added sugar. Exemptions include alcoholic drinks, alcohol-free beer, wine, pure fruit and vegetable juices, unsweetened spritzers and drinks sweetened with artificial sweeteners. The government plans an exemption for small producers making no more than one million litres a year. The tax is also meant to push manufacturers to use less sugar – so for shoppers, the recipe of familiar drinks may change as well as the price.

According to Ärzteblatt, the federal government expects revenue of 690 million euros next year and 925 million euros in 2028. The money is meant to help keep statutory health insurance contributions stable. Frei stressed that the sugar tax serves primarily as preventive health care. The coalition groups are next due to introduce the bill in the Bundestag, where it can still be amended. How much the levy will ultimately be felt on supermarket shelves therefore also depends on the final law (as of 19 October 2026).