Based on a new draft from the Ministry of Finance, the German government aims to apply a higher tax increase on tobacco products, exceeding initial forecasts. This initiative aims to improve public health and strengthen state coffers.
The document obtained by the German Editorial Network foresees that the price for a standard pack of 20 cigarettes will reach around 12 euros by 2030. This is approximately 40 cents higher than previously calculated.
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The tax will be applied gradually on an annual basis and is not limited to cigarettes but also extends to rolling tobacco, pipe tobacco, cigars, and their substitutes, including e-liquids for electronic cigarettes. For the latter, an annual increase of one cent per milliliter in the tax portion is planned.
According to authorities, the objectives are twofold: to offset the budget gap and to curb smoking, especially among younger age groups. Estimates show that this measure will generate around 756 million euros in additional revenue for the federal budget in 2027, while starting from 2030, it is expected to bring in more than 3.5 billion euros annually.
