Smoking: Expensive cigarettes: Bundestag votes for higher tobacco tax

Millions of people smoke in Germany, which brings the federal government billions in revenue from tobacco taxes. There will be even more in the future. Smokers therefore have to be prepared for higher prices.

A woman smokes a cigarette (archive): This could become more expensive in the future. Photo: dpa

Berlin. 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.

Since this tax collection is passed on to customers, the price is expected to rise from currently around 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 become significantly more expensive.

The federal government is hoping for additional tax revenue of around 12 billion euros within four years to plug the holes in the budget. The black-red coalition hopes – similar to the planned sugar tax on drinks – to have a steering effect so that citizens live healthier lives.

But the tobacco industry has doubts about this - it 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 those aged 15 and over smoked.

With this decision, the Bundestag goes well beyond the original government draft. Overall, it was ensured that another 3.3 billion euros would be injected into the state coffers - 750 million in 2027, rising to 872 million in 2030.

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.