Sugar tax: What’s planned and who it will affect

The sugar tax on sugar-sweetened drinks has cleared a major hurdle. According to G+G (AOK) dated 14 October 2026, the CDU/CSU–SPD coalition has agreed on a tax on sugar-sweetened drinks; the Federal Cabinet approved the compromise on the same day as a drafting aid. The tax is therefore set to be introduced on 1 July 2027, with a two-tier rate. According to G+G, the Bundestag has yet to pass the resolution. Here is the current status – with the date and source for each piece of information.

Sugar tax in Germany: the current situation in five points

• Cabinet decision on 14 October 2026: According to G+G (AOK), the Federal Cabinet has adopted the coalition’s compromise on the sugar-sweetened drinks tax as a drafting guide.
• To come into effect on 1 July 2027: that is how G+G and the Hamburg Consumer Advice Centre describe it (both 14 October 2026). The Federal Government states that the tax is due to come into effect from July 2027.
• Two tiers: 26 cents per litre for drinks containing between five and less than eight grams of sugar per 100 millilitres, and 32 cents per litre for drinks containing eight grams or more (G+G, 14 October 2026). The third tier previously envisaged by the Federal Ministry of Finance has been scrapped.
• Exceptions: According to G+G, spritzers, zero-calorie drinks, alcoholic drinks and their alternatives, and oat-based drinks remain exempt from excise duty.
• Still pending: According to G+G, the Bundestag has yet to pass a resolution. The exemption for independent producers up to one million litres also requires EU approval.

The background to this is set out earlier in this article: the Cabinet decision of 29 April 2026, which provided for a start date of 2028, and the Ministry of Finance’s key points outlining a three-stage approach. This information has been superseded by the decision of 14 October 2026.

How much should the sugar tax be?

According to G+G (AOK) dated 14 October 2026, the guidance on wording approved by the Cabinet provides for a two-tier tax rate. On the same day, the Hamburg Consumer Advice Centre referred to the same tiered structure.

Level	Total sugar content	Tax
Level 1	between five and less than eight grams per 100 millilitres	26 cents per litre
Level 2	from eight grams per 100 millilitres	32 cents per litre
Syrups and concentrates	according to the mixing ratio stated on the packaging	in accordance with the tiered rates
Drinks containing sweeteners	–	excluding

Regarding prices, the Federal Government states: Manufacturers, wholesalers and stockists are, in principle, free to set their own prices. The sugar-sweetened drinks tax, as an excise duty, is designed in such a way that the tax burden is passed on to end customers. For drinks with a certain sugar content, price increases ‘in the double-digit cent range’ are to be expected.

Background: Federal Finance Minister Lars Klingbeil had sought to introduce a third tier involving high taxation on drinks with a high sugar content. According to G+G, this has been scrapped as part of the compromise; Federal Chancellor Friedrich Merz had previously rejected this idea. The two-tier solution is in line with the recommendation made by the Health Finance Commission in its report published in March. The three tiers previously described here – at 4.5, 7 and 10 grams per 100 millilitres – are therefore now obsolete.

Which drinks are subject to the sugar tax?

According to G+G (14 October 2026), this primarily refers to lemonades, cola, energy drinks, juices with added sugar and iced teas. Syrups and concentrates are to be taxed in accordance with the tiered rates, based on the mixing ratio stated on the packaging.

The Federal Government describes the scope as follows: The sugar-sweetened drinks tax applies to drinks with a total sugar content above a certain level, such as soft drinks, iced teas, energy drinks and fruit nectars. It is also intended to cover sugary syrups and similar concentrates. On 14 October 2026, the Hamburg Consumer Advice Centre listed lemonades, iced teas, energy drinks and fruit juice drinks with added sugar.

According to the Federal Government, the following are not to be affected: alcoholic drinks, corresponding non-alcoholic alternatives and mixed drinks based on these, milk, oat and rice drinks, as well as mixed drinks based on these, pure fruit and vegetable juices, pure fruit and vegetable juice concentrates, unsweetened fruit and vegetable juice spritzers, and drinks sweetened with sweeteners. On 14 October 2026, the Hamburg Consumer Advice Centre also listed non-alcoholic beers and non-alcoholic alternatives such as fruit wines, sparkling wines and cocktails.

The Hamburg Consumer Advice Centre has criticised this exemption: it fears it could create a loophole, as a lemonade could ‘suddenly become a non-alcoholic fruit wine’. This needs to be examined as a matter of urgency.

Sugar tax and zero-calorie drinks with sweetener

Under the cabinet compromise, ‘zero’ drinks are to remain exempt. G+G explicitly includes them in the list of exemptions on 14 October 2026. On the same day, the Hamburg Consumer Advice Centre stated that drinks containing sweeteners – so-called ‘zero’ drinks – would not be subject to any additional tax. The Federal Government also lists drinks sweetened with sweeteners amongst the exemptions.

Background: The Ministry of Finance’s working paper proposed that drinks containing sweeteners should also cost 26 cents per litre. The Ministry of Agriculture warned that a tax on sweeteners would reduce the incentive to replace sugar with such substances. On 26 August 26, Finance Minister Klingbeil dismissed the idea: “What makes no sense is a sugar tax on sugar-free drinks.” And: “I won’t do that. It won’t happen.”

‘What’s in Zero drinks’ reveals what’s in Zero drinks.

When does the sugar tax come into force?

The scheme is due to be introduced on 1 July 2027. This was reported by G+G (AOK) on 14 October 2026 in relation to the cabinet decision, and the Hamburg Consumer Advice Centre also cited 1 July 2027 on the same day. The Federal Government states that the tax is to take effect from July 2027.

The date is not yet final: according to G+G, the Bundestag has yet to pass a resolution. CSU regional group leader Alexander Hoffmann considers the mid-2027 start date to be too early; speaking on NTV, he advocated 1 January 2028 as the “preferred date”: “That would give companies time to adapt their recipes.” The Hamburg Consumer Advice Centre also points to calls for a postponement until 1 January 2028.

Background: On 29 April 2026, the Cabinet had decided on a start date of 2028; the Ministry of Finance later proposed 2027, whilst the Ministry of Agriculture rejected 2027. These details have been superseded by the resolution of 14 October 2026.

Who should pay the sugar tax – and what is it intended to achieve?

According to the Federal Government, the sugar-sweetened drinks tax is structured as an excise duty in such a way that the tax burden is passed on to the end consumer. Manufacturers, wholesalers and stockists are, in principle, free to set their own prices.

There are exceptions for small businesses: according to G+G (14 October 2026), small producers are exempt if they produce no more than 70,000 litres per year. A new feature of the compromise is an exemption for independent producers up to one million litres; this still requires EU approval. The Hamburg Consumer Advice Centre considers this exemption to be too broad, as it would mean that significantly fewer producers would be covered.

Regarding revenue, G+G states: Next year, the tax is expected to generate 690 million euros for the state, rising to 925 million euros by 2028. According to G+G, as agreed in the Statutory Health Insurance Contribution Rate Stabilisation Act, the tax revenue is to be used in part to offset the shortfall in the health fund caused by the reduced federal subsidy. The Federal Government states that the revenue should be used to keep statutory health insurance contributions stable. The Hamburg Consumer Advice Centre points out that tax revenue generally flows into the general federal budget and is not, as a rule, earmarked for a specific purpose.

The Federal Government states that its aim is to provide an incentive for manufacturers to reduce the total sugar content in drinks. According to the Federal Ministry of Finance, as quoted by G+G, the excise duty is intended to protect “the health of children and young people, but also of adults”. The Federal Government estimates that the increased consumption of sugary drinks costs the healthcare system over two billion euros a year; G+G puts the figure at around 2.1 billion euros a year.

Background: Under the model proposed by the Finance Committee on Health, it is not the consumer who pays at the till, but rather those who place the drinks on the market: domestic manufacturers, suppliers from other EU Member States and importers from third countries. The aforementioned revenue of around 450 million euros per year has been superseded by the figures dated 14 October 2026.

Sugar tax in other countries

Since April 2018, the UK has levied a tax of 18 pence per litre on drinks containing more than 5 g of sugar per 100 ml, and 24 pence on those containing more than 8 g. Ireland followed suit on 1 May 2018 with a levy of 20 cents per litre for drinks containing 5 g or more and 30 cents for those containing 8 g or more; Mexico has been taxing sugary drinks at a rate of one peso per litre since 2013. By 2023, more than 50 countries had introduced a tax on soft drinks; within the EU, these included Belgium, Finland, France, Croatia, Latvia, Poland, Portugal, Spain and Hungary.

Has Germany ever had a sugar tax before?

Yes. Prussia introduced a sugar tax in 1841; it was abolished on 1 January 1993 with the introduction of the European Single Market, in order to prevent distortions of competition. Unlike back then, the current plans focus on the sugar content of drinks.

Timeline

Date	What happened
1841	Prussia introduces a sugar tax
01.01.93	Germany is abolishing the sugar tax in line with the EU single market
04/18	The UK is introducing a levy on sugary soft drinks
29.04.26	Cabinet decides: Tax on sugar-sweetened drinks from 2028 (outdated)
03.06.26	Federal Government cites expected revenue of around 450 million euros in the Bundestag (outdated)
08/26	Ministry of Finance working paper: three stages, starting in 2027, including drinks containing sweeteners (outdated)
25.08.26	Ministry of Agriculture refutes this: two stages, exemptions, not 2027
26.08.26	Klingbeil rules out a tax on sugar-free drinks
14.10.26	The Federal Cabinet has approved the coalition compromise as a drafting guide: to be introduced on 1 July 2027, with two stages at 26 and 32 cents per litre; the third stage has been scrapped (G+G)
14.10.26	Hamburg Consumer Advice Centre: Agreement reached by the Federal Government; to come into force on 1 July 2027; exemption for businesses producing up to one million litres; the European Commission must give its approval
open	The Bundestag has yet to pass a resolution (G+G, 14 October 2026)

What this means for drinks no sugar or sweetener

According to G+G (14 October 2026), the levy is only set to apply to drinks containing five grams of sugar per 100 millilitres or more. A drink containing 0 g of sugar per 100 ml falls below this threshold. According to the Federal Government, drinks sweetened with sweeteners are to be exempt in any case. The law will only become binding once it has been passed: the Bundestag has yet to take a decision.

According to the label, the ACQUA REAPER range contains no sugar and no sweeteners:

• Still Water: Still table water; Ingredients: natural mineral water. Contains no sugar, sweetener, flavourings or colourings.
• Sparkling Water: Table water, carbonated; Ingredients: natural mineral water, carbon dioxide. Contains no sugar, sweetener, flavourings or colourings.
• Citrus: Water, carbon dioxide, acidifier (citric acid), natural citrus flavouring; 1 kcal per 100 ml.
• Lime & Mint: Water, carbon dioxide, natural lime flavouring, citric acid (acidity regulator), natural peppermint flavouring; 1 kcal per 100 ml.
• Pink Grapefruit: Water, carbon dioxide, natural grapefruit flavouring, acidifier: citric acid; 1 kcal per 100 ml.
• Energy – Blackcurrant & Pomegranate: No sugar and no sweetener, 1 kcal per 100 ml, 32.0 mg caffeine per 100 ml. Mandatory warning: High caffeine content. Not recommended for children or pregnant or breastfeeding women (32 mg/100 ml).

Both the German Government and G+G explicitly cite energy drinks as an example of beverages that should be subject to the tax. The total sugar content is the decisive factor in this regard.

Frequently Asked Questions

Sources

1. In the Cabinet: Tax on sugary drinks | Federal Government (bundesregierung.de), accessed on 28 October 2026. bundesregierung.de
2. Federal Cabinet approves compromise on sugar tax | G+G (aok.de), accessed on 28 October 2026. aok.de
3. Agreement in principle on the sugar tax – this is what is to apply (vzhh.de), accessed on 28 October 2026. vzhh.de
4. German Bundestag: Printed Paper 21/6290 – Response from the Federal Government, 3 June 26. dserver.bundestag.de
5. German Bundestag (hib): Federal Government sets out details of plans for a sugar tax, 16 June 26. bundestag.de
6. Deutsches Ärzteblatt: Government plans to extend the sugar tax to other drinks, accessed 16 September 2026. aerzteblatt.de
7. Hamburg Consumer Advice Centre: Sugar tax: What are the plans?, as at 25 August 26. vzhh.de
8. t-online: Sugar tax: Klingbeil and Rainer disagree on the drinks issue, 25 August 26. t-online.de
9. ZDFheute: Sugar tax on zero-calorie drinks: Klingbeil says ‘No’, 26 August 26. zdfheute.de
10. HOGAPAGE: Klingbeil scales back planned sugar tax, 26 August 26. hogapage.de
11. GvW Graf von Westphalen: ‘Sugar tax’ – German government plans levy on sugar-sweetened drinks, 26 May. gvw.com
12. Wikipedia: Sugar tax, accessed 16 September 2026. de.wikipedia.org
13. ACQUA REAPER: Product labels, as at 26 July.