Germany plans sugar tax on soft drinks by 2028 to boost health funding, cut consumption 

GERMANY – Germany is planning to introduce a tax on sugary drinks starting in 2028, as part of efforts to support its public health insurance system and promote healthier consumption habits. 

According to reports, the proposal is based on a draft by Health Minister Nina Varken, which outlines a levy on sweetened beverages aimed at reducing sugar intake while generating additional revenue for healthcare funding.  

The measure is expected to bring in approximately €450 million (US$526.21M) annually, which will be directed toward financing the statutory health insurance system. 

The proposed tax structure introduces a tiered system based on sugar content. Beverages containing less than 5 grams of sugar per 100 milliliters will be exempt from the tax.  

Drinks with sugar levels between 5 and 8 grams will face a levy of €0.26 per liter, while those containing more than 8 grams will be taxed at €0.32 per liter.  

The rates are also expected to be indexed annually to inflation. Products containing artificial sweeteners and 100% fruit juices will not be included in the taxation framework. 

The initiative follows recommendations from the Expert Commission on Health Care Reform, which identified sugary drink taxation as a tool to help stabilize healthcare costs.  

Christos Pantazis highlighted the preventive focus of the measure, stating: “This is not about dictating to people how to live. It’s about what we want to do to support a healthy lifestyle.” 

He added that the policy is intended to help prevent conditions such as cardiovascular diseases and obesity, particularly among children and young people. Support for the proposal has also come from the medical community.  

Susanne Yona pointed to international evidence, saying, “The experience of other countries, including the United Kingdom, proves the effectiveness of such measures: manufacturers change the formulation, which leads to a reduction in sugar consumption.” 

Germany’s move marks a shift in policy, as the country has previously resisted implementing such a tax despite relatively high sugar consumption levels.  

Data indicates that average daily sugar intake from beverages in Germany stands at 25.7 grams, exceeding levels seen in countries such as Portugal and Italy. 

The proposal aligns with guidance from the World Health Organization, which has recommended increasing taxes on sugary drinks, alcohol, and tobacco to curb consumption and improve public health outcomes. 

However, the plan has faced opposition from industry representatives. Christophe Minov argued that manufacturers are already voluntarily reducing sugar levels and questioned the effectiveness of additional taxation, while also raising concerns about increased financial burdens on companies. 

Countries such as the United Kingdom and Mexico have implemented similar measures, with studies indicating reductions in sugar consumption and related health risks following their introduction. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.