Berlin, October 14th, 2026 (The Berlin Spectator) – Germany’s governing coalition of the conservative CDU/CSU and the center-left SPD has resolved its dispute over a tax on sugary drinks. The Federal Finance Ministry announced on Tuesday evening that the government had agreed on “a drafting aid for the governing parliamentary groups”, which was supposed to be approved by the cabinet today. The “Redaktionsnetzwerk Deutschland” (RND) reported the story first.
According to the draft, the levy is to take effect on July 1st, 2027. Beverages containing at least 5 grams of sugar per 100 milliliters would be taxed at 26 cents. For drinks with 8 grams per 100 milliliters, the rate would rise to 32 cents. RND reported that manufacturers producing less than one million liters of sweetened drinks per year would be exempt.
The government expects revenue of about 690 million Euro in 2027 and 925 million Euro in 2028.
A Long Fight
Finance Minister Lars Klingbeil (SPD) has argued that the tax should do more than fill the federal treasury. He wants it to encourage beverage makers to lower the sugar content and make their products healthier. Earlier this month, however, the Chancellery put his plans on hold. Government circles said his draft deviated from the proposal of the Finance Commission on Health and lacked a majority within the cabinet in that form.
Resistance continued until the end. A few days ago, the nine agriculture and consumer protection ministers from the CDU/CSU in the federal states wrote to Merz to oppose the idea. In their letter, they criticized the tax as an exercise in state steering that needlessly made certain foods more expensive.
Boris Rhein (CDU), the state premier of Hesse, joined the critics. He told the “Kölner Stadt-Anzeiger” daily rising living costs were among Germany’s biggest problems. In his view, the plan sends “a wrong signal”, because it is not about promoting health but about making citizens pay for gaps in the federal budget. Rhein also warned that jobs in the mostly mid-sized beverage industry could be at risk.