A group of German state ministers have hit out at the federal government to plans to implement a tax on sugary drinks.
Over the weekend, local news outlets including Bild and Die Welt reported that nine state ministers penned a letter in which they said they “oppose a consumption tax on sugary products”.
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The joint letter, which was viewed by the two publications but not by Just Drinks, was penned by agricultural and economic ministers to Chancellor Friedrich Merz, Nina Warken the head of the federal chancellery and CDU/CSU parliamentary group leader Thorsten Frei.
“A balanced diet with moderate sugar consumption is crucial to avoid various health problems. There are different ways to achieve greater sugar reduction, not just the one through regulation,” the letter said. “We do not believe that an additional tax on sugar or soft drinks is the right approach.”
They added that what is required instead is “nutrition education, personal responsibility, awareness, and innovation.”
Signatories reportedly included Bavaria’s State Minister for Agriculture, Michaela Kaniber, a member of the CSU party, as well as Baden-Württemberg’s Minister of Agriculture, Marion Gentges and Felor Badenberg, Berlin’s Senator for Justice and Consumer Protection.
Germany is looking to bring in a tax on sugary beverages as part of wider plans to reform the country’s health insurance system.
The federal cabinet of Germany’s Ministry of Health approved a draft law at the end of April aims to prevent increasing healthcare costs in the country.
While 2028 was originally proposed as the expected date for implementation of the sugar tax, recent reports in Germany have said it could be brought in from July next year.
On Friday (9 October) Bild reported that, according to information it had obtained, the coalition government had agreed on a tax that would apply to larger companies that bottle over 70,000 litres a year.
Earlier this month, local reports in Germany suggested the draft bill on the sugar tax presented by the finance minister had been blocked by the chancellery.
Government sources told Bild the Ministry of Finance’s proposal had deviated from the original plan brought forward by the Finance Commission on Health and that it did not have majority support “in its current form”.
On Thursday (8 October), a group of national industry associations called on the federal government and parliament to “pull the plug” on the sugar tax plans.
“This tax is unfair, arbitrary, and out of step with the times,” the statement, which came from associations including the German Brewers Association, said. “A sugar tax would significantly increase the price of beverages, place an additional burden on companies in an already strained economic situation, and create a massive bureaucratic apparatus.”
The statement, which was also attributed to bodies such as the German Association of Non-Alcoholic Beverages (WAFG) and the Association of the German Fruit Juice Industry (VdF), also criticised the plans to implement the law in July 2027, calling it “irresponsible”.
“A completely new excise tax cannot be reliably introduced within just a few months. Companies have to review and classify thousands of products for tax purposes, reprogram their inventory management, accounting, and IT systems, establish tax-related processes, train employees, and set up bonded warehouses. In addition, price lists, labels, contracts, calculations and product range planning need to be adjusted.”
