Germany’s parliament has begun reviewing a government proposal to increase taxes on cigarettes, heated tobacco, e-liquids, fine-cut tobacco and other tobacco products each year from 2027 through 2030. The plan would raise the estimated average retail price of a 20-cigarette pack from about €8.05 currently to €8.77 in 2027 and €11.36 by 2030.
Bill referred to parliamentary committees
The Bundestag held the bill’s first reading on September 24 and referred the proposal to parliamentary committees for further consideration. The tax increases remain proposals.
The government estimates that the tax changes would generate an additional €756 million in tobacco-tax revenue in 2027. That figure is projected to rise to €3.589 billion annually by 2030.
Industry groups call for lower increases
The German Association of the Tobacco Industry and Novel Products, known as BVTE, has launched a campaign calling for lower and more predictable tax increases.
The campaign is backed by BAT, JTI, Philip Morris, Reemtsma and tobacco trade associations. The groups have cited concerns about the effect of the proposed increases on legal-market sales and illicit trade.
Key takeaway
Germany is considering annual tobacco-tax increases from 2027 through 2030. The government projects substantial additional revenue, while industry groups are seeking lower increases and warning about possible effects on legal sales and illicit trade.
Key points to remember
- Germany’s Bundestag held the first reading of the tobacco-tax bill on September 24 and referred it to committees.
- The proposal would increase taxes on cigarettes, heated tobacco, e-liquids, fine-cut tobacco and other tobacco products annually from 2027 through 2030.
- The estimated average retail price of a 20-cigarette pack would rise from about €8.05 currently to €11.36 by 2030.
- The government estimates additional tobacco-tax revenue of €756 million in 2027 and €3.589 billion annually by 2030.
- The BVTE and supporting tobacco industry and trade groups are calling for lower and more predictable increases.
Source Acknowledgement
Based on reporting by Tobacco Reporter in “Germany to Discuss Annual Tobacco Tax Increases,” published September 23, 2026. No source journalist was supplied. Prepared independently for Smoke Free News; the source is credited for the reported information without implying endorsement.
Source: Tobacco Reporter
- Published
- 24 Sep 2026
- Last verified
- 24 Sep 2026
