Overview
- A three‑page Finance Ministry paper that circulated Tuesday proposes a three‑tier, sugar‑content levy and would also apply the lowest rate to drinks sweetened with non‑nutritive sweeteners.
- The draft lowers the entry threshold to 4.5 g sugar per 100 ml and sets rates at €0.26/L (4.5–7 g), €0.32/L (7–10 g) and €0.38/L (>10 g).
- The proposal expands the tax base beyond traditional soft drinks to include items named in the paper such as juices from concentrate, ready coffees, milk‑based drinks, plant‑based milks, beer‑mixes and certain syrups and concentrates.
- The plan has provoked a coalition row: the Agriculture Ministry filed a Leitungsvorbehalt saying the paper exceeds expert recommendations while Finance Minister Lars Klingbeil publicly defended the broader approach.
- Projected revenues and use of proceeds are contested — government planners cite about €650 million for 2027 while other ministries estimate up to roughly €2 billion — and consumer price rises and industry reformulation are expected based on international experience.