Why there are discussions about the sugar tax again

It had actually already been clarified that a sugar tax was to be introduced. Nevertheless, the Chancellery is now slowing down with a draft from the Ministry of Finance. What is behind it? Why is the topic pressing?

By Nicole Kohnert There are few topics that are as emotionally charged and repeatedly end up on the desk of Finance Minister Lars Klingbeil as a planned tax on sugary drinks. It was not until the end of August, on the sidelines of the cabinet retreat in Neuhardenberg, that he had to clarify that there would be no sugar tax on sugar-free drinks. A key points paper from his ministry became known at the time. His tax officials also levied a sugar tax on non-sugar beverages, such as oat milk or zero drinks.

Klingbeil immediately spoke out on his Instagram channel at the time, trying to capture it again. “A sugar tax on non-sugar drinks doesn't make sense,” he said. Since then, the Ministry of Finance has continued to work on how and, above all, on what a sugar tax can now be levied. A draft on the sugar tax, which the Ministry of Finance sent to the other ministries on Monday, is now causing a lot of criticism in the coalition and finds no consensus.

Debates about gram numbers and products For days now, state secretaries from various ministries have been discussing this in the background - such as the Ministry of Finance, the Ministry of Agriculture or the Ministry of Health. It's about what exactly a tax should be levied on. For example, fruit spritzers to which additional sugar has been added are also under discussion. But the amount of the tax and the gram numbers of sugar are also discussed.

A government-appointed commission originally recommended a staggered sugar levy: for drinks containing five grams of sugar or more per 100 milliliters, around 26 cents of tax per liter should be due. From eight grams of sugar, manufacturers should pay 32 cents. As of 2028, annual revenues of around 450 million euros are to be expected, the Commission wrote. Protest against Klingbeil's draft However, the draft of the Ministry of Finance provides for a different graduation.

For example, from seven grams of sugar, a tax of 32 cents is to be levied, with ten grams already 38 cents. The tax should apply from 1 July 2027. According to the plans of the Ministry of Finance, it should then bring in a good 795 million euros next year - more than the commission set up had calculated.

This brings many critics to the square. The food industry in particular has been going through a storm for days. The trade union Lebensmittel-Genuss-Gaststätten is even calling for a rally in front of the Federal Ministry of Finance on 8 October.

Parts of the Union, but also some federal states, are also against it. For Klingbeil, the planned sugar tax is about a lot, because it is decisive for the preparation of the federal budget, according to the Ministry of Finance. Without this tax, the Minister of Finance lacks money for the counterfinancing of the health fund. In four weeks, the federal budget is to be approved by the Bundestag.

Negotiations are now in full swing in the back rooms to find a compromise for the sugar tax with the Union.