German plan for sugar tax on Coke Zero fizzles out / Photo: © AFP
German plan for sugar tax on Coke Zero fizzles out
German government proposals to include Coke Zero and other artificially-sweetened drinks in its new sugar tax fizzled out Wednesday after pushback within the ruling coalition and from businesses.
From next year, Europe's biggest economy is set to join many other countries by levying a tax on sugary drinks in a bid to raise funds to support its under-pressure health system.
But proposals circulating earlier this week had revealed that officials from the finance ministry, led by the centre-left SPD party, were pushing for a wider range of drinks to be covered.
These included artificially-sweetened soft drinks, as well as flavoured milk drinks and alcohol-free wine and beer.
After an outcry from more conservative politicians in the governing centre-right coalition and from drinks companies, a watered down proposal emerged -- but sugar-free drinks were still covered.
With discontent still bubbling, Finance Minister Lars Klingbeil said Wednesday the plan to tax artificially-sweetened drinks was now off the table.
"As finance minister I will not present a tax under which sugar-free drinks are taxed," Klingbeil, reportedly a big Coke Zero fan, told reporters after a cabinet meeting in Neuhardenberg, outside Berlin.
"I think that's nonsense, if I can put it bluntly."
He had earlier posted on Instagram: "Sugar tax on Zero?... NO!"
While the German plan fell flat, some countries, including France and Poland, already tax artificially-sweetened beverages.
The details of the new levy are being prepared, Klingbeil said. When they initially agreed to the tax, the coalition had estimated it could bring in some 650 million euros ($760 million) annually.
(L.Svenson--DTZ)
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