Politics · Germany · 3 hrs ago
Hesse premier criticises planned tax on sugary drinks
Hesse premier Boris Rhein criticised Germany’s planned tax on sugary drinks, calling it a burden as living costs rise.
He said it would make consumers pay to fill federal budget gaps and could threaten jobs in the drinks industry.
The governing coalition has agreed on a two-tier tax, after a dispute over how it should work.
From July 1, 2027, the plan would charge 26 cents for drinks with at least 5 grams of sugar per 100 millilitres, and 32 cents for those with at least 8 grams.
The government says the tax would raise about €690 million in 2027, increasing to €925 million in 2028.
It also aims to encourage manufacturers to reduce sugar in their drinks.
The cabinet is due to consider the plan, while opposition to the tax has continued.
Hesse premier Boris Rhein called the planned tax on sugary drinks a “Teuer-Steuer” and said it was the wrong signal.
The coalition has agreed on a two-tier tax, which the cabinet is due to consider.
The tax is planned to take effect on 1 July 2027.
The proposed rates are 26 cents for drinks with at least 5 grams of sugar per 100 millilitres and 32 cents at 8 grams.
The government expects the tax to raise about €690 million in 2027 and €925 million in 2028.
- Who
- Hesse premier Boris Rhein criticised the planned tax. The federal government and its coalition partners agreed on the proposal.
- What
- A two-tier tax on sugary drinks is planned. Rhein called it a “Teuer-Steuer” and said it would burden people and threaten jobs.
- When
- The tax is planned to start on 1 July 2027. The cabinet is due to consider the plans.
- Where
- Germany.
- Why
- The federal government says the tax would raise revenue and encourage manufacturers to reduce sugar in drinks. Rhein said it was the wrong signal amid rising living costs and would make people pay for federal budget shortfalls.
Boris Rhein and other opponents
Federal government
Purpose of the tax
Boris Rhein and other opponents
Rhein said it was not about promoting health but about raising money to fill federal budget gaps.
Federal government
The government says the tax would raise federal revenue and encourage manufacturers to reduce sugar.
Impact
Boris Rhein and other opponents
Rhein said the tax would add to people’s costs and threaten jobs in the drinks industry.
Federal government
The government’s stated aim is to encourage manufacturers to make drinks healthier.
The chancellery temporarily halted its plans for the tax.
Nine Union state agriculture and consumer-protection ministers wrote to Chancellor Friedrich Merz opposing the tax.
The coalition settled its dispute over how to design the tax.
The cabinet was due to consider the government’s proposal.
The tax is planned to take effect.
- Start date
- 1 July 2027
- Rate at 5 grams of sugar per 100 millilitres
- 26 cents
- Rate at 8 grams of sugar per 100 millilitres
- 32 cents
- Expected revenue in 2027
- About €690 million
- Expected revenue in 2028
- €925 million
2 sources
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What people are saying
A sugar tax is therefore the wrong signal, especially since it is not about promoting health but about making citizens pay again for the federal budget’s holes.
I consider a sugar tax the wrong signal, especially since it is not about promoting health but about making citizens pay again for the federal budget’s holes.