German Committee Approves Tobacco Tax Hike, Raising Cigarette Prices by €4 by 2030

The German Bundestag’s Finance Committee has approved a tobacco tax reform that will steadily increase the price of cigarettes, fine-cut tobacco, and e-cigarette liquids between 2027 and 2030. The measure targets federal budget consolidation and youth health protection, raising cigarette pack prices by nearly four euros over four years.

Under the approved schedule, an average 20-cigarette pack—priced at €8.05 in mid-2025—will reach €11.78 by 2030. The federal government estimates the tax increases will generate €1.5 billion in additional revenue in 2027 alone.

Health Defense Against Tobacco Industry Pushback

SPD member of parliament Frauke Heiligenstadt supported the committee’s decision, emphasizing price as an active deterrent:

“Smoking kills, and the most effective tool against smoking is price,” Heiligenstadt said. “Children and young people react to higher prices, and this is the group we want to protect.” She added that smoking creates substantial follow-up costs for health insurance providers and taxpayers.

The tobacco industry opposed the plan. Jan Mücke, managing director of the Federal Association of the Tobacco Industry and Novel Products (BVTE), labeled the fiscal projections unrealistic “castles in the air” and warned that buyers will turn to the illicit market. Addressing that risk, Heiligenstadt stated: “You do not fight the black market with low taxes, but with strong customs enforcement.”

Legislative Timeline and Health Data

CDU lawmaker Carsten Brodesser advocated for moderate tax increases during committee deliberations but failed to win majority backing. Following the committee’s approval, the legislation heads to the Bundestag plenary for a final vote, where passage is expected before moving to the Bundesrat.

Data from the German Cancer Research Center (DKFZ) shows that approximately 131,000 people died from tobacco-related diseases in Germany in 2023. Meanwhile, the 2025 Microcensus recorded that 19 percent of German residents aged 15 and older continue to smoke.

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Matthew Ma

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With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.