Germany Plans E-Liquid Tax Hike to 35 Cents as Black Market Hits 50%

The German government has proposed raising the excise tax on e-cigarette liquids to 33 cents per milliliter, with coalition lawmakers pushing for an increase to 35 cents by January 2027. The move comes as industry data confirms that illicit products now control 50 percent of the German market.

Coalition Targets Higher Tax Rates by 2027

The proposal drafted by the CDU/CSU and SPD coalition will directly increase consumer prices. A three-cent tax rise to 35 cents per milliliter will add approximately 36 cents to a standard 10-ml bottle of e-liquid, reflecting an estimated retail price increase of roughly 3 percent.

Proposal Level	Tax Rate per ml	Estimated 10-ml Price Impact
Current Baseline	32 cents	Baseline price
Government Proposal	33 cents	+12 cents per bottle
Coalition Target (Jan 2027)	35 cents	+36 cents per bottle (~3% increase)

Illicit Market Expands to 50 Percent

The Alliance for Tobacco-Free Enjoyment (BfTG) warned that successive tax hikes continue to push consumers toward illegal channels. Following the tax adjustment to 32 cents per milliliter, the illicit share of the total market rose from 40 percent to 50 percent.

The Federal Association of the Tobacco Industry and Novel Products (BVTE) documented illicit distribution networks operating in Berlin, where counterfeit packs sold for 4.50 euros compared to the legal price of 8.50 euros. These counterfeit goods carried duplicated track-and-trace codes, foreign health warnings, and lacked valid German tax stamps.

The BVTE urged policymakers to conduct realistic impact assessments before passing new tax increases, cautioning that excessive taxation undermines state regulation and strengthens criminal trade networks.

Read more: Germany’s Vaping Black Market: 40% of Products Now Sourced Illegally

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Matthew Ma

Marketing at Ecigator

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.