Sugary Drinks Tax: BMLEH Withholds Ministerial Approval of the Proposed Framework

The food ministry opposes the earlier start date, broader range of drinks and proposed rate structure

Germany’s proposed sugary drinks tax is once again unresolved within the federal government. The Federal Ministry of Agriculture, Food and Regional Identity opposes bringing the start forward to 2027, expanding the range of drinks covered and introducing the proposed three-tier rate structure.

In April 2026, the federal government announced plans to introduce a levy on sugar-sweetened drinks from 2028. This followed a recommendation from the Health Finance Commission intended to stabilise statutory health insurance. The Commission proposed a tiered levy on sugar-sweetened soft drinks based on the British model. Annual revenue of approximately €450 million was expected. A transition period of around twelve months was intended to give manufacturers time to reformulate [1][2].

The Federal Ministry of Finance’s framework paper, which has since become public, defines the taxable products much more broadly. The start is to be brought forward to 2027. Alongside conventional sugar-sweetened soft drinks, the proposed scope includes fruit nectars and drinks made from fruit juice concentrates, smoothies, flavoured milk drinks, plant-based alternatives, alcohol-free beers and wines, and mixed drinks made from them. Light and zero-sugar drinks made with sweeteners are also included [3][4].

Three rate bands are proposed. From 4.5 grams of sugar per 100 millilitres, the levy would be 26 cents per litre; between 7 and 10 grams it would be 32 cents, and above 10 grams, 38 cents. A uniform rate of 26 cents per litre is proposed for drinks containing sweeteners. The Health Finance Commission had recommended an entry threshold of 5 grams per 100 millilitres and two bands [2][4].

BMLEH has reserved approval of these proposals to ministerial level. The ministry intends to give its final consent only after reviewing a specific legal text. It particularly criticises the departures from the Health Finance Commission’s recommendation, the substantially expanded scope and the resulting revenues. According to calculations by the economic affairs and food ministries, soft drinks alone could generate around €2 billion a year. This would be significantly higher than the €650 million allocated to stabilising statutory health insurance in 2027 and at least €450 million from 2028 [3].

BMLEH is also critical of including sweeteners. Applying the same entry-level tax to sugar-free drinks weakens the fiscal incentive to replace sugar with sweeteners. The ministry further calls for an appropriate distinction for drinks containing significant amounts of naturally occurring sugars, including juice-and-water drinks, nectars, smoothies, flavoured milk drinks and plant-based alternatives. Plant-based and milk drinks should be treated equally. For alcohol-free beer and wine, the ministry also points to possible price relationships with alcoholic products and the resulting conflict with alcohol prevention objectives [3].

For the rate structure, BMLEH favours no more than two bands, with thresholds of 5 and 8 grams of sugar per 100 millilitres. It expressly rejects a 2027 start because of the short preparation period. Reformulation, annual negotiations with retailers, price calculations and technical changes would already be well advanced or complete for many manufacturers. Control mechanisms, collection procedures, responsibilities and the administrative and financial burden on businesses also remain unresolved [3].

The reservation of ministerial approval does not end the proposal. For now, it blocks interministerial agreement on the basis of the existing framework. A sugary drinks tax remains the political intention; its scope, rate structure and introduction date must now be negotiated further within the federal government before being translated into a specific draft bill.

Food for thought, indeed. Andreas Gebhart

Sources

All sources checked and accessed on 25 August 2026.

1. Deutscher Bundestag: Details zur geplanten Zuckerabgabe, 16.06.2026.
2. BMG: Erster Bericht der FinanzKommission Gesundheit, Empfehlung 66.
3. Lebensmittel Zeitung: Alois Rainer legt Veto gegen Ausweitung der Zuckersteuer ein, 25.08.2026.
4. RND: Klingbeils Zuckersteuer, 25.08.2026.

Note: This update describes the political position known on 25 August 2026. The framework paper is not an adopted draft bill. Image: AI-generated.