German government rules out extra tax on sugar-free beverages

The German government does not intend to impose an extra tax on sugar-free beverages, Finance Minister Lars Klingbeil said Wednesday.

"I won't do that. It won't happen," Klingbeil said on Instagram, adding that a "sugar tax on sugar-free beverages" made no sense.

A document from Klingbeil's ministry made public Tuesday proposed that zero-calorie and light beverages, beer mixes, oat drinks and instant coffees, among others, be subject to the sugar tax in addition to sodas.

The proposal referred to beverages "containing sugar and/or sweeteners" as well as "granules containing sugar or sweeteners."

Pure milk and 100% fruit juice were listed as exempt in the draft.

Klingbeil said experts from relevant ministries discuss controversial and divergent ideas before political decisions are made.

"Now, such a working draft has surfaced in the media. It has neither been politically agreed upon nor adopted by the coalition," he added.

According to German daily Bild, the proposal called for three tax brackets ranging from 26 to 38 cents per liter.

The lowest bracket would apply from 4.5 grams of sugar per 100 milliliters and would also cover beverages containing sweeteners, the newspaper reported.

The proposal called for a tax of 32 cents per liter at seven grams and 38 cents per liter at 10 grams or more, according to Bild.

The center-right government coalition has already agreed in principle to introduce a sugar tax, which is expected to generate approximately €650 million ($758.2 million) next year.