The timeline for the new tax regulation on sugary drinks in Germany has been clarified. The Cabinet has approved a draft bill prepared to balance health expenditures and encourage healthier consumption habits.
In a statement from the German Ministry of Finance, it was emphasized that excessive sugar consumption increases the risk of obesity, type 2 diabetes, cardiovascular diseases, and tooth decay. The statement noted that the increase in the consumption of sugary drinks is estimated to place a burden of approximately 2.1 billion euros on annual health expenditures.
According to the bill, the tax is planned to come into effect as of July 1, 2027. The revenue generated from the implementation will be transferred to the health fund to keep statutory health insurance premiums stable.
Instead of the previously discussed three-tier structure, a two-tier system has been adopted. Accordingly, a tax of 26 cents per liter will be levied on drinks containing 5 to 8 grams of sugar per 100 milliliters, and 32 cents per liter on drinks containing 8 grams or more of sugar.
The tax will cover cola, sodas, sugary fruit drinks, iced teas, energy drinks, and sugary syrups. Pure fruit and vegetable juices, milk alternatives, drinks containing sweeteners, as well as alcoholic beverages already subject to other excise taxes and their non-alcoholic alternatives, will be exempt.
If the regulation is enacted, the taxpayers will be the manufacturers or wholesalers. Small and independent producers with an annual production volume of up to 70 thousand liters are planned to be exempt from the tax, and an additional exemption is planned for businesses producing up to 1 million liters. European Commission approval is required for this additional exemption to take effect.
The German government expects 690 million euros in revenue in 2027, the year the tax begins. In the 2028-2031 period, annual revenue is projected to be between 875 and 890 million euros on average.
News Source: 12punto
