Coalition reaches compromise on sugar tax, exempting small producers

Germany’s ruling coalition of the SPD and Union has negotiated a compromise on a sugar tax, limiting the levy to sizable beverage manufacturers and granting an exemption to small operators. A second, higher production limit is under review by the European Union. The tax proposal had been temporarily halted by the chancellor’s office earlier this year, but officials remain confident about its eventual rollout.

Industry representatives, including the head of the food association and the brewers’ federation, criticize the measure, arguing it will raise drink prices and burden low-income consumers. Despite the criticism, coalition leaders expressed optimism that the tax will be implemented soon.