The German Chancellery halted a sugar tax draft proposal from Finance Minister Lars Klingbeil on Thursday morning. The plan targeted beverages with over five grams of sugar per 100 milliliters, proposing a tiered tax structure starting on July 1, 2027.
The Finance Ministry allowed other ministries only 24 hours for review, prompting objections from Agriculture Minister Alois Rainer and Digital Minister Karsten Wildberger. The draft deviated from previous health commission proposals regarding tax levels.
Despite the setback, the federal government still intends to tax sugary drinks. The proposal, covering sodas and syrups but excluding milk and juices, was projected to generate 1.2 billion euros annually by 2028 to support the national budget and health.