Overview
- A leaked Finance Ministry working paper published Tuesday proposed a tiered per‑litre charge tied to sugar content with three rates of 26, 32 and 38 cents and a much wider product scope than earlier plans.
- Media used those draft rates to model retail prices and showed large increases for many drinks, which helped trigger objections from the Agriculture Ministry, industry groups and parts of the coalition.
- Government critics said the draft would far exceed expert recommendations and produce much higher revenues — preliminary ministry calculations cited sums up to about €2 billion annually versus earlier estimates near €650 million.
- Following days of pushback, Finance Minister Lars Klingbeil and coalition leaders publicly ruled out applying the levy to non‑sugar (Zero/Light) drinks on Wednesday, while keeping the principle of a tiered sugar charge.
- Key details remain unresolved: ministers must now agree exact sugar thresholds, which product categories are included, how revenue will be used and the legal timetable for a probable 2027 implementation.