The Agriculture and Food Ministry Is Also Resisting the Law, According to Spiegel Information

Hesse's state premier has joined Bavaria in opposing the federal government's planned sugar tax, adding to growing resistance within Germany to Finance Minister Lars Klingbeil's proposal. Boris Rhein (CDU), Hesse's minister-president, told the dpa news agency: "In a time when many people are struggling with high prices, the state must not make food and drinks even more expensive." He said politics must cushion the current price crisis rather than worsen it, and called for "a clear rejection of another tax increase on food for our citizens and a commitment to real relief for people in everyday life, including lower energy prices, reduced social security contributions, and tangible relief on daily living costs. The black-red federal government plans to introduce a tax on sugary drinks, but the specific design remains disputed.

A paper from Klingbeil's Finance Ministry suggests the levy could cover more products than initially assumed, potentially including juices, milk drinks, iced teas, beer-mix beverages, oat drinks, and ready-made coffees alongside lemonades. The Agriculture and Food Ministry is also resisting the law, according to SPIEGEL information. In a letter to the Finance Ministry, it states: "From a technical perspective, it must be noted that the key issues paper goes significantly beyond the recommendations of the Health Finance Commission, and has therefore imposed a "management reservation, refusing to approve the current draft in inter-ministerial coordination.

Deputy Union parliamentary group leader Albert Stegemann told the Politico news portal that Klingbeil's plans "shoot far beyond the mark, saying the expansion to as many drinks as possible serves "recognizably primarily the consolidation of the budget. Klingbeil, however, said "the entire federal government" stands behind the plans, and declined to confirm reports that the tax would also apply to products with sweeteners instead of sugar, citing confidential government discussions. He rejected the accusation of primarily seeking additional state revenue: "It's not about the budget at all, but about health protection, he told RTL and n-tv, aiming to better protect children and strengthen the health system.

That has happened in many other countries. We are doing that here too. The food industry voiced opposition in early July, warning against introducing the tax as early as 2027. The Food Association Germany and the Federal Association of the German Food Industry said health effects are disputed, but consumers and businesses would definitely be additionally burdened.

The sugar industry, beverage wholesalers, and beverage industry associations are also vehemently opposed, while consumer centers and Foodwatch support Klingbeil's plans. Associations estimate the tax revenue, including VAT, at nearly four billion euros per year. Depending on sugar content, crates of lemonade and cola would become 2.50 to 4.50 euros more expensive per crate, the Bild newspaper cited calculations from the Association of Non-Alcoholic Beverages, the German Brewers' Federation, and the Mineral Water Association.