Smoking: Cigarettes are becoming more expensive – tax plans clear an important hurdle

Berlin. Smoking cigarettes are becoming more expensive: tax plans overcome an important hurdle. The federal government is desperately looking for money to fill its tight coffers. One idea was to tax cigarettes more heavily. After sharp criticism, the proposed law is now almost at its destination.

According to the project, tax rates will gradually increase between 2027 and 2030; in 2030, a pack of 20 cigarettes could cost almost four euros more than currently. In the summer, according to the Federal Ministry of Finance, such a pack in Germany cost an average of 8.05 euros; in 2030 the price could be 11.78 euros. Tobacco taxes on fine-cut tobacco – i.e. roll-your-own tobacco – as well as on shisha tobacco and liquids for e-cigarettes will also be increased.

The SPD member of the Bundestag Frauke Heiligenstadt was relieved after the vote. “Smoking kills and the most effective way to stop smoking is price,” she said. “Children and young people in particular react to higher prices and it is precisely this group that we want to protect.” Heiligenstadt also pointed out the high costs of smoking for the health system. “This puts a strain on the health insurance companies and therefore on everyone who is insured and who pays contributions.”

The tobacco industry had criticized the plan as excessive and warned that many consumers would turn to the black market. The expected additional income is dubious “castles in the air,” says Jan Mücke from the industry association BVTE. Regarding the black market warning, Heiligenstadt said: “The black market is not fought with low taxes, but with strong tariffs.”

The CDU member of the Bundestag Carsten Brodesser had also expressed criticism of the project and advocated moderate tax surcharges. The Christian Democrat, who sits on the Finance Committee of the Bundestag, was unable to prevail with this attitude.

With the green light from the committee, the proposed law is almost there. The tobacco tax law should come before the Bundestag plenary session on Thursday evening; a majority vote is very likely. The Federal Council could then raise an objection, which is considered purely theoretical.

Smoking is carcinogenic. According to the German Cancer Research Center, around 131,000 people in Germany died as a result of tobacco-related diseases in 2023. In Germany, millions of people resort to cigarette smoking. The 2025 microcensus showed that 19 percent of those aged 15 and over smoked.