Germany Approves Sugar Tax
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The German federal government has agreed on a sugar tax, set to come into effect on July 1, 2027. The tax will be levied on sweetened beverages with a sugar content of 5 grams or more per 100 milliliters. Two tax rates are proposed: 26 cents for drinks with 5-8 grams of sugar, and 32 cents for those with 8 grams or more. Small manufacturers producing less than one million liters per year may be exempt. The tax is expected to generate around 690 million euros in 2027 and 925 million euros in 2028, earmarked for stabilizing health insurance contributions. It aims to incentivize beverage manufacturers to reduce sugar content and promote healthier products.
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