Politicians from Germany’s Social Democratic and Green Party want to end the unequal tax treatment of cow's milk and plant milk as soon as possible. Their liberal coalition partner, the Free Democratic Party, wants to wait for the tax estimate first. This is not necessary.

"Almost three euros for water and a bit of oats!" Phrases like this are consistently heard in the milk departments of Germany's supermarkets. The astonishment at the pricing of plant-based milk alternatives usually increases when the comparison to classic cow's milk follows because the latter is often cheaper than the climate-friendly alternative. This may be partly due to the fact that the VAT rate for milk alternatives is 19%, while only 7% is levied on cow's milk as a staple. Politicians from Germany’s Social Democratic and Green Party want to put an end to this unequal treatment now. The goal: Tax plant-based milk also at 7% as soon as possible. Out of all parties, the Free Democratic Party remains cautious and plans to await the tax estimate in a first step. With an industry turnover of around 550 million euros, the missed revenue is likely to be manageable. At the same time, the treasury could be filled in other ways: According to Germanwatch, the low taxation of the aviation sector, for example, means that the German government did miss out on 4 billion euros - just in 2022.