Germany has reportedly delayed the introduction of its planned sugar tax by six months.
The country’s federal cabinet approved plans to bring in a tax on sugary drinks in mid-October.
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Under the plans, the tax had been expected to be implemented by 1 July next year.
However, according to multiple local reports, the tax is now not due to come into force until the beginning of 2028.
Germany’s national news broadcaster Tagesschau reported earlier today (12 November) that Thorsten Frei, the CDU/CSU parliamentary group leader, announced the change yesterday evening.
The broadcaster said the move was made “partly to allow manufacturers of soft drinks, for example, time to adjust their recipes”.
A spokesperson from the Federal Ministry of Finance told Just Drinks the sugar tax is part of ongoing discussions taking place within the Parliament.
“We appreciate your understanding that we are unable to provide a specific timeline for implementation at this stage,” they added.
Germany’s federal parliament needs to approve the legislation before it can officially enter into force.
Reflecting on the reports, the German Association of Non-Alcoholic Beverages (WAFG) said: “Postponing the start date does nothing to eliminate this long-term, increased financial burden. The fact that this ‘bureaucratic monster’ has not been reined in speaks volumes about the government’s political priorities.”
Holger Eichele, chief executive of the German Brewers Association, called the move “a half-baked compromise”.
He said: “The Ministry of Finance knew from the outset that the 1 July start date would be virtually impossible for customs to meet.
“Consumers and businesses are footing the bill for this sleight of hand. The sugar tax will lead to a massive additional burden at a time when costs and prices are already rising sharply. The coalition could still pull the emergency brake, but unfortunately it lacks the courage to do so.”
From 2028, media outlets including Tagesschau have also reported the sugar tax will be split into three tiers instead of two, based on sugar content.
In October, the finance ministry said the proposed sugar tax would apply to sweetened drinks that carry “total sugar content of 5g/100ml or more”.
Under the revised plans, drinks containing between 5g per 100ml and 8g per 100ml will be taxed at €0.26 ($0.29) per litre.
Drinks containing 8g of sugar per 100ml or higher will be taxed at €0.32 per litre.
In its statement, the WAFG said: “A third tax tier for the tax on sugary drinks places an additional burden on consumers, causing the price of a crate of conventional cola or soft drinks to rise significantly – by five euros. The more complex the tax structure becomes, the clearer it is that the primary objective is to generate additional revenue for the federal budget.”
Last month, the finance ministry said drinks affected would include sodas, iced teas, energy drinks and juice concentrates.
Sugary syrups, as well as “corresponding concentrates” used to prepare drinks and which are sold to consumers or catering customers, were also be taxed.
