German parliament backs tobacco tax hike for revenue, health

Germany's Bundestag voted late Thursday to implement a graduated tobacco tax rise that will lift the average price of a 20-cigarette pack from roughly €8 to about €9 next year and nearly €12 by 2030.

Coalition projects €12 billion revenue

The measure passed with support from Chancellor Friedrich Merz's center-right CDU/CSU alliance and the center-left SPD. Officials project the step will generate roughly €12 billion in extra federal revenue between 2027 and 2030, with funds entering the general budget rather than earmarked programs. Past increases have primarily served to close fiscal deficits, and the government cited budget consolidation alongside public health as dual objectives.

Mortality data drives health argument

Health authorities view higher prices as an effective mechanism to reduce smoking rates. The German Cancer Research Center reported that tobacco-related diseases killed approximately 131,000 people in Germany during 2023, while a 2025 survey indicated that 19% of the population aged 15 and older continues to smoke. Fine-cut tobacco used for rolling cigarettes will also face substantial price increases under the new schedule.

Phased implementation begins 2027

The increases will take effect step by step each January from 2027 through 2030, with manufacturers setting actual retail prices based on the higher statutory rates. Brand cigarettes could cost as much as €14 by the end of the period, depending on the manufacturer.