BERLIN: The German government plans to introduce a sugar tax as part of measures to address its growing budget deficit in the coming years, according to a draft bill seen by AFP on Tuesday.
Under the scheme, which is expected to be included in the 2027 budget, consumers of sweet drinks like Coca-Cola could be expected to cough up for the public purse.
Some manufacturers of sodas and other sweet drinks have responded to similar taxes in other countries by reducing sugar content and ramping up artificial sweeteners.
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Berlin plans to borrow 110 billion euros ($128 billion) in 2027 for its core budget, compared with 98 billion this year and 66.9 billion in 2025, according to new budget projections.
Under Chancellor Friedrich Merz it is also going on an additional borrowing spree in a bid to revamp its infrastructure and boost its economy, with money from a special fund designed to pay for new investments outside of the core budget.
A sluggish economy and planned rises in defence expenditure amid a perceived threat from Moscow while it fights Ukraine on Europe’s eastern flank have meanwhile put pressure the core budget.
German defence spending is projected to rise to 3.7 percent of GDP by 2030, according to the finance ministry, up from 2.8 percent this year.
The proposed sugar tax was reviewed in March by a working group bringing together lawmakers from the ruling conservatives and centre-left SPD.
Several countries have introduced taxes on sugary or sweetened drinks, including Saudi Arabia, France and the United Kingdom.
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