Overview
- The federal cabinet approved the draft in mid‑October and set an implementation date of 1 July 2027, but the bill now goes to coalition factions and the Bundestag where changes are being sought.
- The levy targets 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.
- The draft lists multiple exemptions, including alcoholic drinks, pure fruit and vegetable juices, milk products, drinks with sweeteners, and producers that make no more than one million liters a year.
- Manufacturers are legally liable for the tax and can reformulate products, absorb the charge, or pass it to shoppers with an extra 19% VAT on the increase; media price checks show some popular drinks could rise by around 10–25% if costs are fully passed on.
- CDU/CSU leaders including Thorsten Frei and Alexander Hoffmann are pushing for transition periods or a later start (proposed early 2028) and oppose extra administrative posts, leaving the final timing and rules unresolved and worth watching for effects on producers and jobs.