Tobacco tax blunder: Greens and AfD demand answers in the Bundestag

A drafting blunder in Finance Minister Lars Klingbeil's tobacco tax reform is heading for the Bundestag. Katharina Beck, finance spokeswoman for the Greens' parliamentary group, wants the issue put on the agenda of the next finance committee meeting at short notice and will also request a so-called topical debate. The far-right AfD has also filed a request for such a debate, according to its finance expert Kay Gottschalk, likely for the next session week.

The law was meant to apply from Jan. 1, 2027, but because of a faulty clause it took effect on Oct. 21 – and, going by its wording, with the rates planned for 2030. It also sets rates for e-cigarette liquids only from 2027, which legal scholars say means no tax is due on them until the end of the year – a reading the ministry rejects. The Finance Ministry calls it a technical error, says the old rates will apply until Dec. 31 and is seeking a correction. Legal experts doubt that is possible without lawmakers.

Thorsten Frei, who leads the conservative CDU/CSU parliamentary group, is standing by the increase despite the chaos. Speaking to Welt am Sonntag, he described tobacco tax as a consumption tax on something that is not strictly necessary for living, while conceding it could push up inflation. The Bundestag does not reconvene until Nov. 2.