Overview
- The Federal Chancellery halted the Finance Ministry’s draft on Thursday, saying the proposal is not majority-backed because it differs from the Financial Commission Health’s agreed design.
- Klingbeil’s draft would have taxed beverages from 5 grams of sugar per 100 milliliters with three rates of €0.26, €0.32 and €0.38 per liter and exempted Zero drinks, pure fruit/vegetable juices without added sugar, and alcohol-free wine, beer and sparkling wine.
- The Finance Ministry projected roughly €945 million in the first year and about €1.15–1.18 billion in later years, a figure far above the roughly €450 million estimate in the commission’s recommendation and a key reason for the dispute.
- Industry groups, several Union politicians and some federal states have pushed back on the draft for economic and administrative reasons while the NGG union has called a demonstration at the Finance Ministry for 8 October.
- Ministers will renegotiate technical rules, rates and exemptions next, with officials and firms weighing likely consumer price effects, added customs and IT enforcement needs, and the policy aim to encourage reformulation using WHO guidance and the UK levy as reference points.