The cabinet approved the bill on October 14; the tax would take effect in July 2027 and still needs parliament's approval
The government of Germany approved the creation of a tax on sugary drinks on October 14, according to a federal government statement. Collection is due to begin on July 1, 2027, but still depends on a vote in the Bundestag, the German parliament. It covers soft drinks, iced teas, energy drinks, fruit nectars, and the syrups and concentrates used to make drinks. The government estimates the price of affected drinks will rise by a few dozen euro cents.
According to AOK, the country's largest network of public health insurers, the tax will have two tiers: €0.26 per liter for drinks with 5 to under 8 grams of sugar per 100 ml and €0.32 per liter from 8 grams up. Syrups and concentrates are taxed according to the dilution shown on the package. Finance Minister Lars Klingbeil wanted a third, more expensive tier for very sugary drinks; Chancellor Friedrich Merz opposed it, and it was dropped from the bill.
Exempt are alcoholic drinks and their alcohol-free versions, pure fruit and vegetable juices, milk and oat or rice drinks, juice-and-water mixes without added sugar, and drinks sweetened with sweeteners. Small producers of up to 70,000 liters a year also pay nothing. The government wants to extend the exemption to independent producers of up to 1 million liters, which requires approval from the European Commission.
The government justifies the measure by the need to cut sugar consumption and the diseases linked to it, such as excess weight, cardiovascular problems, tooth decay and diabetes, especially among children and teenagers. According to the statement, sugary drinks cost the health system more than €2 billion a year. The proposal follows the recommendation of an independent expert panel, the FinanzKommission Gesundheit. Expected revenue is €690 million in 2027 and €925 million in 2028, according to AOK, and part of it is meant to cover the fund that finances public health insurance.
The measure is not a consensus. AOK reports that Alexander Hoffmann, head of the CSU group in the Bundestag, thinks July 2027 is too soon and prefers January 2028, to give companies time to change recipes. Agriculture ministries of states governed by the CDU and CSU protested in an open letter, and the NGO Foodwatch called the tax a milestone for children's health. In Brazil, the tax reform also provides for a Selective Tax on sugary drinks, with its rate still undefined.
Sources: German Federal Government (October 14, 2026), AOK (October 14, 2026).
