Bundestag decides to increase tobacco tax

The Bundestag has decided to significantly increase the tobacco tax. Late on Thursday evening, the parliamentary plenary session voted for a corresponding change in the law with the votes of the coalition factions.

As a result, the average price for a pack of 20 cigarettes is expected to increase by almost four euros to just under twelve euros by 2030. Fine-cut cigarettes - i.e. rolling your own cigarettes - will also be significantly more expensive than they are currently. Millions of people in Germany turn to tobacco cigarettes. The 2025 microcensus showed that 19 percent of those aged 15 and over smoked.

The revenue is not earmarked and benefits the federal government - in the past, tobacco tax increases were used to plug budget holes, and not just in the health sector.

The federal government is hoping for additional tax revenue of around twelve billion euros within four years. But the tobacco industry has doubts about this - it fears that smokers will turn to the black market and legal dealers will suffer losses.

The Federal Council still has to agree

The federal government justified the amendment to the law with the necessary budget consolidation and health protection. According to the German Cancer Research Center, around 131,000 people in Germany died as a result of tobacco-related diseases in 2023. Health experts believe higher prices are an effective measure to encourage smokers to quit.

The legislative process for tobacco tax ends on Friday in the Federal Council. The state chamber has the opportunity to object to the amendment to the law, but there is no sign of this so far. It is therefore expected that the Federal Council will approve the project and that the tax increase will be a done deal.