The German Bundestag has passed legislation introducing phased tobacco tax increases from 2027 to 2030. Backed by the governing coalition of the Union and SPD, the reform targets cigarettes, roll-your-own tobacco, shisha products, and e-cigarette liquids, aiming to cut smoking rates while generating billions in federal revenue.
Steep Price Adjustments Across All Nicotine Categories
Under the approved schedule, the average price for a standard pack of 20 cigarettes will increase from the current baseline of €8.05 to roughly €11.78 by 2030. The Federal Association of the Tobacco Industry and Novel Products (BVTE) projects that premium brands will cost between €13 and €14 per pack.
The tax adjustments extend beyond conventional cigarettes. Roll-your-own fine-cut tobacco, shisha tobacco, and nicotine liquids used in e-cigarettes will also see continuous price rises across the four-year period.
| Product / Metric | Current Level | Projected Level by 2030 |
|---|---|---|
| Standard Cigarette Pack (20 units) | ~€8.05 | ~€11.78 |
| Premium Cigarette Brands | ~€9.00 - €10.00 | €13.00 - €14.00 |
| Annual Tobacco Tax Revenue | Baseline budget | ~€21 billion |
Fiscal Targets and Parliament Debate
Federal officials project that the reform will generate €12 billion in additional revenue between 2027 and 2030. The intake begins with an estimated €1.5 billion increase in 2027, with total annual tobacco tax revenues expected to reach €21 billion by 2030.
Proponents defended the measure as a vital preventative tool. "Smoking kills, and the most effective tool against smoking is price," said SPD financial politician Frauke Heiligenstadt during parliamentary debates. "Children and young people in particular react to higher prices, and that is precisely the group we want to protect."
Industry leaders rejected the government's economic assumptions. BVTE managing director Jan Mücke dismissed the revenue forecasts as unrealistic "castles in the air," warning that higher costs will push consumers into unregulated black markets. From the opposition, Green Party MP Johannes Wagner labeled the bill "half-hearted," urging lawmakers to enact standardized plain packaging and stricter advertising bans.
The bill now moves to the Bundesrat for final consideration, where state representatives are expected to clear the legislation without objection.
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