German Government Proposes Tiered Sugar Tax on Sweetened Beverages Starting 2027

The German government has approved a draft law to introduce a tiered sugar tax on sweetened beverages, set to begin in July 2027. This measure aims to address the country's high sugar consumption and its related health consequences. Currently, Germans consume an average of 70 grams of "free" sugar daily, surpassing the World Health Organization's recommended 50 grams. Overweight and obesity rates are alarming, with 61% of men and 38% of women classified as overweight, and 19% obese. Among less-educated populations, obesity reaches nearly 29%. The government projects that the sugar tax will generate additional revenues of €690 million in 2027 and €925 million in 2028, which will be used to stabilize statutory health insurance contributions.

The tax will apply at two rates: 26 cents per liter for beverages containing 5 to 8 grams of sugar per 100 ml, and 32 cents for those exceeding 8 grams per 100 ml. Studies from countries that have implemented similar taxes show promising declines in childhood obesity and dental problems, alongside reductions in diabetes, hypertension, heart attacks, and strokes. However, evidence from Mexico indicates that while government revenues rose, the prevalence of overweight individuals did not significantly drop.

A Greenpeace study estimates that sugar-related health issues cost the German healthcare system about €12 billion annually, underscoring the urgency of policy intervention. The draft bill now proceeds to the Bundestag for further discussion and debate.