The German government has approved a plan for a new tax on beverages with high sugar content. The coalition parties, the CDU/CSU Union and the Social Democratic Party of Germany (SPD), agreed on the measure. The proposal was prepared by Federal Minister of Finance Lars Klingbeil, and the cabinet approved it in a revised, milder form. Deutschlandfunk ↗
The tax is to apply to sweetened non-alcoholic beverages, which are expected to become more expensive in Germany from July next year. The measure is designed to have a two-tier structure, with the specific amount of the levy depending on the amount of sugar in the beverage. The details of the proposal are based on the specific legislative text submitted to the federal cabinet. n-tv ↗
Revenue from the new tax is meant to help stabilize contributions to statutory health insurance and reduce pressure on health insurance funds. Germany is thus joining several European countries that already tax sweetened beverages or similar products. Der Standard ↗
However, the proposal also faces criticism within the conservative Union. Hesse's state premier Boris Rhein described the plan as a "tax on the cost of living." Despite the disputes, the coalition agreement allowed the cabinet to approve it. Further progress will depend on the proposal's deliberation in the legislative process and on the final form of the rules for manufacturers and consumers. Tagesspiegel ↗
German government approves milder tax on sweetened beverages
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