Germany news: Sugar tax plan leaves sour taste

Despite being widely described as a “sugar tax,” the proposal is aimed at drinks containing sugar or sweeteners, rather than sweets or other sugary foods.

A Finance Ministry paper suggests the levy could apply not only to soft drinks but also to:

• Juices
• Milk-based drinks
• Iced tea
• Beer-based mixed drinks
• Oat and soya drinks
• Ready-made coffee drinks
• Alcohol-free beer and wine

The paper also floated taxing zero- and light drinks containing artificial sweeteners. But Finance Minister Lars Klingbeil has now ruled that out.

“I won’t do that. It won’t happen,” Klingbeil said on Instagram, adding that a “sugar tax on sugar-free drinks” made no sense.

He stressed that the leaked paper was only an internal working document and had neither been politically agreed nor approved by the coalition.

Pure milk and 100% fruit juice were listed as exempt in the draft. The final scope of any tax therefore remains unsettled.

Political opposition to Germany’s planned sugar tax has widened, with criticism now coming from both the Greens and the center-right Christian Democratic Union (CDU).

Green Party co-leader Felix Banaszak said he supported a sugar tax in principle but feared the proposal was being used primarily to plug holes in the federal budget.

Banaszak said the original purpose of such a tax should be to reduce health risks linked to high sugar consumption and the resulting costs for the health system.

“My impression is that an instrument we fundamentally support is now simply being used to plug budget holes,” he told Welt TV, adding that using the tax mainly as a revenue-raising measure could undermine public support for it.

Hesse’s State Premier Boris Rhein of the CDU has called for the plan to be dropped altogether.

“At a time when many people are struggling with high prices, the state must not make food and drinks even more expensive,” Rhein said.

He argued that the government should instead focus on lower energy prices, reduced social security contributions and easing everyday living costs.

The Agriculture Ministry has also expressed reservations about the current proposal, while other CDU lawmakers have criticized its scope.

Consumer groups and Foodwatch support the idea, while food and beverage industry associations remain strongly opposed.

Guten Tag from DW’s newsroom in Bonn.

You join us as Germany’s planned sugar tax is proving politically unpalatable, with criticism now coming from both the Greens and the conservative Christian Democrats.

Meanwhile, German Cabinet members, including Chancellor Friedrich Merz, are meeting for a second day at Neuhardenberg Castle in Brandenburg. German ministers are expected to brief reporters on the outcome of the meetings.  

Also, German exporters are sounding more upbeat than they have in years.

The Ifo economic institute says the export economy is “gaining momentum,” with demand from the European Union looking especially strong.

Stay with us here for these stories and more of what Germany is talking about today.