A proposal to levy a tax on sugar-sweetened beverages in Germany has been submitted to the cabinet level. If approved, Germany will impose the tax on sugary drinks from July 1, 2027, while exempting smaller producers.
According to German sources, under the plan, drinks containing 5 grams or more of sugar per 100 milliliters will be taxed at 26 euro cents per liter; when sugar content reaches 8 grams or more per 100 milliliters, the rate rises to 32 euro cents per liter. Drinks using sweeteners and pure fruit juice are not included in the tax, and non-alcoholic beer, non-alcoholic wine, and drinks made from soy, nuts, seeds or grains are also exempt.
Producers of sugar-sweetened drinks with annual output of less than 1 million liters can be exempted from the tax to avoid adding to the burden on such businesses.
The sources also said the German government is expected to approve the tax plan on Oct. 14. The tax is expected to bring in about 690 million euros and 925 million euros in fiscal revenue in 2027 and 2028, respectively.
There had been divisions within Germany's governing coalition over the issue of taxing sugary drinks. Some officials from the CDU/CSU union parties believed that taxing sugar-sweetened drinks would drive up prices of certain foods.
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