Overview
- The cabinet on Wednesday approved a formulation aid for a two-tier levy that would charge €0.26 per liter for drinks with at least 5 g of sugar per 100 ml and €0.32 per liter for drinks with at least 8 g per 100 ml, set to take effect on 1 July 2027.
- The draft carves out exemptions for small producers, fully excluding firms with up to 70,000 liters a year and proposing a further exemption up to one million liters that requires European Commission approval as state aid.
- The Finance Ministry expects the measure to raise about €690 million in 2027 and €925 million in 2028, saying proceeds will help stabilise statutory health‑insurance contributions and incentivise manufacturers to cut sugar.
- The proposal follows an earlier Kanzleramt pause of a broader Klingbeil draft and has drawn public resistance from nine CDU/CSU state agrar‑ and consumer ministers and warnings from industry about higher prices, extra bureaucracy and job risks.
- Next steps include Bundestag debate, possible Bundesrat input, an EU review of the large‑producer exemption and administrative work to set collection and customs rules before the planned July 2027 start.