Politics · Germany · 59 mins ago
German coalition delays sugar tax and shelves plastic tax plan
Germany’s governing Union and SPD parties reached a compromise on the 2027 budget after prolonged talks.
The tax on sugary drinks, originally planned for July 2027, will now begin on 1 January 2028.
It will use three tax levels based on sugar content, and the revenue is intended to help stabilise health insurance contributions.
The planned tax on plastic packaging will not be introduced in 2027.
The parties have not found the roughly €5.4 billion needed to cut electricity tax for households, so the cut is now unlikely, though it could still be considered during final budget changes.
Some planned social cuts were also reversed, including cuts to a child supplement for low-income families and to housing benefit.
The Bundestag’s budget committee is due to make final changes before the budget is put to a vote in late November.
Germany’s governing coalition has agreed to delay a sugar tax on sweetened drinks until January 1, 2028.
The tax will use three sugar-content bands instead of the two originally planned.
The coalition will not introduce a planned tax on plastic packaging in 2027.
A cut in electricity tax for all consumers has no identified funding and is unlikely to take effect at the start of 2027.
The agreements came during negotiations over Germany’s 2027 federal budget.
- Who
- Germany’s governing coalition of the Christian Democratic Union and Christian Social Union, and the Social Democratic Party.
- What
- The coalition delayed the sugar tax, shelved the planned plastic tax for now and has not found funding for an electricity-tax cut for all consumers.
- When
- The agreements were reported on November 11, 2026. The sugar tax is now due to start on January 1, 2028.
- Where
- Germany.
- Why
- The sugar-tax delay is intended to give drink makers time to change recipes. The coalition had not found funding for the electricity-tax cut.
Coalition supporters of the sugar tax
Association of Non-Alcoholic Beverage Producers
Sugar tax
Coalition supporters of the sugar tax
The coalition agreed to introduce the tax on sweetened drinks from January 1, 2028, using three sugar-content bands.
Association of Non-Alcoholic Beverage Producers
The association’s head said the third band would make the tax a revenue-raising measure and increase the price of a crate of cola or lemonade by five euros.
Purpose of the tax
Coalition supporters of the sugar tax
The coalition linked the tax to stabilizing health-insurance contributions and giving manufacturers time to adjust recipes.
Association of Non-Alcoholic Beverage Producers
Detlef Groß said the measure was apparently intended only to raise money.
The coalition reached compromises in negotiations over the 2027 federal budget.
The SPD and Union parliamentary groups held meetings to brief members on the agreements.
The Bundestag budget committee was due to hold its final adjustment session on the 2027 budget.
The Bundestag was due to vote on the 2027 budget.
- Sugar tax start
- January 1, 2028
- Sugar-tax bands
- Three, based on sugar content
- Plastic tax
- Not to be introduced in 2027
- Electricity-tax cut
- About €5.4 billion needed to reduce the tax to the European minimum
- Budget year
- 2027
9 sources
Milliardenpoker um den Haushalt - Diese Steuererhöhungen kommen wirklich
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Koalition findet Haushalts-Kompromisse - Zuckersteuer später
Stromsteuer-Senkung kommt nicht: Koalition verschiebt Einführung der Zuckersteuer auf 2028
What people are saying
The plastic tax will not come because it would have a wrong effect, not only economically but also environmentally.
An additional third tax band for classic lemonades finally turns the sugar-drink tax into a revenue-raising tax. A crate of cola or lemonade becomes noticeably more expensive by five euros. It is obviously only about raising money.
The housing benefit will not be cut — one of the best pieces of news from the budget agreement.