In force by mistake: How the tobacco tax error came about

It is a standard wording in many laws: "The law comes into force upon promulgation." The “Law Amending the Tobacco Tax Act”, which regulates the gradual increase in tobacco tax over the next few years, ends in exactly the same way.

The problem: The announcement in the Federal Law Gazette happened on October 19th. The law actually applies now and not just from January 1, 2027.

This means that a pack of 20 cigarettes would already cost just under 12 euros. This high package price is actually only expected to be reached in 2030. But the correspondingly high tobacco tax rate is the standard tax rate at the beginning of the new tobacco tax law. The law then formulates exceptions for the years 2027, 2028 and 2029. The tobacco tax is expected to increase gradually over these years.

Since the law is already in force and we are not yet in 2027, the tax rate for 2030 should actually already apply, including for vapes, cigars and other tobacco products.

Smoking isn't getting any more expensive at first

It is a glitch that no one noticed during the long legislative process. Ultimately, the following objective was always at the very beginning of all drafts: “The bill provides for annual tobacco tax increases over a period of four years, starting on January 1, 2027.”

An increase in tobacco tax at this point in time was never the goal of the government or parliament. That's why it's not being implemented.

How is the problem solved now?

The General Directorate of Customs, which is responsible for tobacco tax, was informed by the Ministry of Finance that the early increase in tobacco tax was a technical error. According to the Ministry of Finance, smoking should not become more expensive until the new year. Customs also calls the entry into force an “obvious error”. The Ministry of Finance is currently examining how the incorrect law should be corrected.

If there are misprints or if something is obviously wrong, a law can be changed even after it has been passed. However, this requires the consent of the President of the Bundestag and the President of the Bundesrat.

The government and opposition have not seen the problem

The criticism of the tobacco tax breakdown comes primarily from the tobacco lobby. Maximilian van Ackeren from the Association of the German Smoking Tobacco Industry accuses the Finance Ministry of “dilettantism”.

The opposition, however, is holding back. Finally, the new tobacco tax law was discussed several times in the Bundestag by all parties. And the error was already contained in the text of the law. Journalists apparently didn't notice the logical error either. The National Regulatory Control Council, an independent advisory body to the federal government that reviews laws for their practical suitability, also does not want to comment on the glitch to the ARD capital studio and refers to the Ministry of Finance.

The glitch in the legal text was overlooked in many places. However, without financial impact.