Germany Passes Tobacco Tax Hikes, Pending Bundesrat Approval
The plan would raise cigarette prices in stages through 2030 and is expected to bring the government about €12 billion in extra revenue.
Key takeaways
- A 20-cigarette pack now priced at €8 is expected to cost about €12 by 2030.
- The tax increases still need approval from Germany’s Bundesrat.
Germany’s lower house passed a measure to raise taxes on cigarettes and other tobacco products, with increases scheduled to take effect each January from 2027 through 2030. The measure still needs approval from the Bundesrat.
A pack of 20 cigarettes priced at €8 is expected to reach about €12 by 2030, while some well-known brands could cost as much as €14. Taxes on rolling tobacco, cigars and water-pipe tobacco would also rise.
The government expects up to €1.5 billion in additional revenue next year and about €12 billion in total by 2030. Finance Minister Lars Klingbeil said the increases aim to reduce the budget deficit and protect public health.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
