Overview
- The Bundeskabinett approved the draft law in mid‑October that would start the levy on 1 July 2027 and assign payment responsibility to manufacturers.
- The tax applies to drinks with at least 5 g of sugar per 100 ml and uses two rates: €0.26 per liter for 5–under 8 g/100 ml and €0.32 per liter for 8 g/100 ml or more, with exemptions for alcoholic drinks, pure juices and beverages with sweeteners and a relief for producers under 1 million liters a year.
- The government expects roughly €690 million in revenue in the first year and about €925 million in 2028 to help stabilise statutory health‑insurance contributions.
- Conservative Union politicians including Thorsten Frei and CSU leaders are pressing for transitional periods or a delayed start (proposed early 2028) to give companies time to reformulate and avoid price rises or job losses, and the beverage industry has mounted an organised challenge.
- Media calculations show that if producers pass the levy in full to shoppers, some common drinks could rise by roughly up to 25 percent, so key outcomes to watch are parliamentary amendments on timing and whether firms reformulate, absorb costs, or raise retail prices.