Germany plans to introduce a so-called "sugar tax" that imposes a levy on beverages based on their sugar content. The measure is projected to generate roughly 800 billion won in tax revenue, which is expected to contribute to fiscal stability.
According to ARD and other broadcasters on Oct. 29 (local time), the German federal government decided at a cabinet meeting to prepare legislation that would impose levies on carbonated and energy drinks based on sugar content, targeting implementation in 2028. An expert committee had earlier proposed charging 26 cents (about 450 won) per liter on beverages containing 5 to 8 grams of sugar per 100 milliliters, and 32 cents (about 554 won) per liter on those with 8 grams or more.
The sugar tax is a policy tool designed to impose additional charges on sugar-containing beverages, encouraging manufacturers to develop low-sugar products and helping reduce related illnesses such as diabetes and obesity. According to the World Health Organization (WHO), at least 116 countries have introduced a sugar tax or similar levy.
Germany had long maintained a cautious stance on introducing a sugar tax. However, it shifted direction as discussions on reforming the statutory health insurance system gained momentum. The move is seen as an attempt to achieve revenue expansion and health policy goals simultaneously.
Experts estimate that introducing the sugar tax would generate approximately 450 million euros (about 778.9 billion won) in additional annual tax revenue. Disease prevention effects could save 20 million to 170 million euros (about 34.6 billion to 294.2 billion won) in health insurance spending. The German government plans to channel these funds into supporting statutory health insurance finances.
Germany ranks among Europe's highest sugar consumers. According to food watchdog Foodwatch, Germans consume an average of 25.7 grams of sugar per day through beverages, the highest level among 10 major European countries. The figure is more than double that of Southern European countries such as Portugal (9.8 grams) and Italy (9.5 grams).
Foodwatch has emphasized the need for the system, noting that the sugar content in beverages declined by about 35% after the United Kingdom introduced a sugar tax in 2018. The industry, meanwhile, has pushed back, arguing that voluntary sugar-reduction efforts are already underway and that the effectiveness of the sugar tax has not been sufficiently proven.
Christoph Minhoff, secretary general of the Federation of German Food and Drink Industries (BVE), said the introduction of the sugar tax contradicts the ruling coalition's pledge not to impose additional tax burdens. "It could empower political forces such as the AfD (Alternative for Germany), which claims that established parties cannot be trusted," he said.
