German tobacco tax hike criticized by customs union over black‑market risk

Thomas Liebel, federal chairman of the BDZ Deutsche Zoll‑ und Finanzgewerkschaft, warned that a substantial increase in the tobacco tax would widen the price gap between legal and illegal products, making the black market more attractive. He said, "Wer die Steuerlast weiter erhöht, riskiert, dass sich dieses Szenario auf den gesamten Zigarettenmarkt überträgt," and warned that the state could lose revenue while organized crime profits.

Finance Minister Lars Klingbeil is pushing a tax increase that would raise the price of a 20‑cigarette pack to about €9.10 next year and to €11.78 by 2030. The goal is to curb smoking, especially among youth, and to generate additional budget revenue. Critics note a conflict: higher prices may reduce consumption, but the projected revenue assumes many smokers will continue, and a larger black market could undermine both health and fiscal objectives.