The German federal government is planning to introduce a plastic levy and a sugar tax, details of which were released by government sources on Tuesday. These measures were reportedly agreed upon within the coalition as part of efforts to consolidate the federal budget. Specific details regarding the implementation of these taxes were not initially provided.
The government’s plan for budget consolidation also includes several other, largely known measures aimed at either injecting more revenue into the budget or reducing expenditures. These proposals include improving efficiency through bureaucratic reduction, reform of the statutory health insurance, long-term care, and pension insurances-the latter two requiring a corresponding reduction in federal subsidies.
Furthermore, the budget consolidation strategy plans for raising the taxes on alcohol and tobacco, as well as implementing taxation on cryptocurrencies and strengthening efforts to combat financial and tax crimes.
To realize these consolidation measures, various ministries are tasked with submitting regulatory proposals. Legislative changes are scheduled to be implemented through the 2027 Budget Accompaniment Act and other sectoral laws. The overarching goal of the federal government is to completely eliminate the need to draw from reserve funds by 2027.