German coalition reaches compromise on sugar‑sweetened drink tax

Germany's black‑red coalition has resolved its internal disagreement on a sugar‑drink levy by adopting a two‑tier structure. Beverages containing five grams of sugar per 100 ml will face a lower rate, while those with eight grams per 100 ml will be taxed at a higher rate. Producers making under one million litres per year are excluded from the charge.

The finance ministry will submit the wording to the cabinet for approval later in the week, after the chancellor’s office had previously paused the proposal. Industry groups have criticised the measure, saying it could raise prices and burden low‑income consumers, while coalition leaders remain optimistic about its rollout.