Overview
- The Bundeskanzleramt halted Finance Minister Lars Klingbeil’s referentenentwurf on Thursday, October 1, 2026, saying the text was “in dieser Form nicht mehrheitsfähig.”
- Klingbeil’s draft would have taxed drinks with at least 5 g sugar per 100 ml in three bands (26, 32 and 38 cents per liter), aimed to start on 1 July 2027, and projected roughly €945m–€1.18bn in annual revenue.
- The Chancellery objected because the draft diverges from the Finanzkommission Gesundheit’s recommendation, which had proposed fewer tiers and forecast about €450m a year in receipts.
- Officials and industry complained about poor coordination during the rollout, with ministries given short comment windows and some ministers reportedly not looped in, and the draft foresees new customs and IT staffing to enforce the tax.
- The proposal has drawn sharp pushback from beverage groups, parts of the Union and the NGG union over higher consumer prices, costs for producers and jobs, and Klingbeil’s office is expected to revise the text during further inter-ministerial talks ahead of the budget vote.