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Klingbeil Circulates Third Sugar‑Tax Draft as Plastics Levy Advances, Prompting Government Rows

The proposals challenge revenue forecasts, require about 1,046 enforcement staff, and risk ministerial vetoes that could delay cabinet adoption.

Overview

  • On Monday, October 5, Finance Minister Lars Klingbeil sent a third draft of a sugar‑drink tax that sets three rates and targets a July 1, 2027 start date.
  • The draft proposes three tiers — €0.26, €0.32 and €0.38 per liter tied to sugar content — and officials estimate up to about €1.2 billion in annual revenue by 2028.
  • A separate Formulierungshilfe for a plastic‑packaging tax projects more than €1.5 billion a year while estimating roughly €44.1 million in annual compliance costs for business.
  • The ministry’s documents call for roughly 1,046 additional enforcement and IT posts, mostly at customs and the federal IT service, creating fresh conflict with coalition promises against new hires.
  • Union politicians and trade groups publicly dispute the revenue math and say early cross‑ministerial coordination was skipped, making ministerial vetos and further negotiation likely before any cabinet decision.