German lawmakers back tobacco tax increases, with upper-house vote pending

Germany’s Bundestag has voted for phased tobacco tax increases intended to generate an additional €12 billion over four years. The amendment still requires a Bundesrat vote, with approval expected because no objections are currently anticipated.

Calculations underpinning the legislation put the expected price of a standard 20-cigarette pack at €8.77 in 2027, followed by €9.56 in 2028, €10.42 in 2029 and €11.36 in 2030. The current average is around €8.05. Hand-rolling tobacco is also set to become more expensive.

The government expects additional receipts of around €1.5 billion for 2027, increasing to €4.5 billion by 2030. Tobacco industry representatives question those projections, warning that higher taxes could push smokers toward illegal sellers or cheaper cigarettes purchased in other EU countries, hurting legal retailers.

CDU lawmaker Carsten Brodesser unsuccessfully sought smaller increases, citing risks to revenue and the legal tobacco trade. SPD lawmaker Ingo Vogel said the reform was intended both to support the budget and to discourage nicotine use. He also acknowledged concerns about a possible expansion of the black market.

Taxes on cigars and cigarillos would rise less sharply than previously planned, while the increase for e-cigarette liquids was slightly larger than expected. The Greens support higher tobacco taxes but regard the planned increases as insufficient. AfD and Die Linke voted against the reform.

The 2025 microcensus found that around 19% of Germany’s population aged 15 and above smoked. The German Cancer Research Centre put deaths from tobacco-related illnesses at around 131,000 in 2023.