Budget talks revised: Union and SPD delay sugar tax, scrap plastic tax, and reverse social cuts
The parliamentary groups of the Union and SPD met on Thursday evening for faction meetings to discuss the status of the budget negotiations.
A shift in the planned sugar tax until 2028 appears to be agreed upon. The 20 percent increase in the sparkling wine tax and the new plastic tax are now not going to happen.
Several cuts in the social sector are being reversed. For example, the immediate allowance for around 3 million poor children in the amount of 25 euros per month is to be maintained. Housing benefit will not be reduced. Basic security will not be increased until June 30, 2028.
The planned income tax reform is still not agreed upon. The electricity tax reduction, which was promised during the election campaign and agreed upon in the coalition agreement, will also not happen in 2027. This measure was intended not only to relieve citizens and companies but also to accelerate electrification to use energy more efficiently and emit less CO2.
