A new excise tax would apply to certain sweetened drinks from five grams of total sugar per 100 millilitres. The Finance Committee of the German Bundestag heard evidence on the plan and other excise measures in the 2027 budget accompanying bill on 9 November 2026. Germany’s federal government is aiming for a 1 July 2027 start. The hearing formed part of the Bundestag’s consideration of the proposal.
Key facts
- The proposed levy would have two rates based on a drink’s total sugar content.
- Manufacturers or wholesalers would be liable for the tax under the proposal.
- Special provisions are proposed for small independent manufacturers.
- The revenue is intended to help reduce a planned cut in the federal contribution to the Health Fund.
Which drinks would be covered
The Federal Ministry of Finance set out the cabinet’s proposal on 14 October. The cabinet had supplied the governing parties in the Bundestag with proposed wording to amend the 2027 budget accompanying bill. According to the ministry, the Bundestag had already provided for a levy of this kind when it passed legislation to stabilise statutory health insurance contributions on 10 July 2026. The October proposal specifies which drinks would be covered and how much the tax would be per litre.
| Total sugar per 100 ml | Proposed tax per litre from 1 July 2027 |
|---|---|
| Below 5 g | No tax under this schedule |
| 5 g to below 8 g | €0.26 |
| 8 g or more | €0.32 |
Soft drinks, iced teas, energy drinks and fruit nectars could be covered. The proposal would also cover sweetened syrups and concentrates used to make drinks, including supplies for the hospitality trade. The federal government lists exemptions for pure fruit and vegetable juices and corresponding unsweetened spritzers. Milk, oat and rice drinks, and non-alcoholic alternatives to alcoholic drinks are also among the proposed exceptions.
Manufacturers or wholesalers would pay the levy. The cabinet proposal provides for special rules for small independent manufacturers producing up to 70,000 litres a year. The Finance Ministry says a further exemption for businesses producing up to one million litres is subject to European Commission approval under state aid rules. For businesses in that group, the relief therefore also depends on an EU procedure.
Why witnesses disagreed
The German Food Federation warned the committee about administrative costs and possible job losses. The Food, Beverages and Catering Union argued that the tax would particularly affect households on low and middle incomes. The customs and finance union called for more time to prepare for implementation. The federal government says businesses in the supply chain generally set their own prices. The amount passed on to shoppers would therefore also depend on decisions made by those businesses.
Economist Amelie Wuppermann cited the Health Finance Commission’s recommendation for a tiered levy and welcomed the plan. Health economist Michael Laxy pointed to research from other countries and said he expected lower sugar consumption and health benefits, particularly for children and teenagers. The government wants the tiers to give manufacturers a reason to reformulate. Bringing a covered drink below one of the thresholds would move it into the lower band or take it out of the levy for that drink.
The government plans to use the revenue to reduce a previously proposed cut to its contribution to the Health Fund. The fund provides Germany’s statutory health insurers with money to cover services for their members. Further consideration in the Bundestag comes next. The proposed start date of 1 July 2027 depends on the measure being passed.
