German upper house approves tobacco tax hike; average pack to cost 11.78 euros by 2030
Germany's Bundesrat has approved a tobacco tax reform already passed by the Bundestag. Cigarettes will get gradually more expensive from 2027, with the government expecting about 12 billion euros in extra revenue.
Symbolic image · Photo: Itti / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Germany's higher tobacco tax is now set after the Bundesrat, the upper house representing the states, approved the reform on Friday. The Bundestag passed it on Thursday evening with votes from the conservative bloc and the Social Democrats, while the AfD, the Greens, the Left Party and two conservative lawmakers voted against. Rates will rise in stages from 2027 to 2030.
The Finance Ministry forecasts the average price of a 20-cigarette pack will rise from 8.05 euros today to 9.10 euros in 2027 and 11.78 euros in 2030. Industry estimates say premium brands could cost up to 14 euros. Fine-cut tobacco, cigars, cigarillos, shisha tobacco and e-cigarette liquids will also become more expensive.
The government expects about 12 billion euros in additional revenue over four years. The tobacco industry doubts that figure and warns smokers could turn to the black market; Jan Mücke of the industry association BVTE called the plans "castles in the air." The German Cancer Research Center said the reform does not go far enough.