Bundestag votes for higher tobacco tax
Quick Look
- With the votes of the CDU/CSU and the SPD, the Bundestag has passed an amendment to the law to gradually increase the tobacco tax.
- As a result, cigarette prices are expected to rise from currently around eight euros to almost twelve euros per pack by 2030.
- The federal government expects additional tax revenue of around twelve billion euros within four years, while the tobacco industry is warning that smokers will turn to the black market.
AI-generated summary
Why It Matters
The tobacco tax in Germany is gradually increasing in order to reduce consumption and increase tax revenue. The 2025 microcensus showed that 19 percent of people over 15 are smokers.
Cigarettes are likely to become significantly more expensive in Germany in the coming years. With the votes of the coalition factions from the Union and the SPD, the Bundestag voted for an amendment to the law that will gradually increase the tobacco tax in the coming years. (Read more about the project here.)
Since this tax collection will be passed on to customers, the price is expected to rise from currently a good eight euros per pack of 20 cigarettes to just under 12 euros in 2030. Fine-cut cigarettes - i.e. cigarettes that you roll yourself - will also be significantly more expensive than currently.
The federal government is hoping for additional tax revenue of around 12 billion euros within four years. But the tobacco industry has doubts about this. She fears that smokers will turn to the black market and legal dealers will suffer losses. Millions of people in Germany turn to tobacco cigarettes. The 2025 microcensus showed that 19 percent of people who are at least 15 years old smoke.
Federal Council decides
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.
What to Watch
AI outlook — possibilities, not facts
The Federal Council will approve the law to increase tobacco taxes.
Very likely · Within days
Cigarette prices will rise to almost twelve euros per pack by 2030.
Likely · Within years
Open Questions
- Exactly how much will the annual tobacco tax increase be?
- What concrete measures is the government planning to combat the possible black market?
- How will the tax increase be distributed across different tobacco products?






