Germany grapples with ending fuel tax break and upcoming cigarette tax hikes

A temporary cut to Germany’s fuel tax, introduced in early May, is set to expire on 30 June. A YouGov poll for dpa found that 39 % of respondents want definitive new relief measures, with another 21 % leaning toward the idea. Overall, 62 % see an extension as reasonable, while 30 % consider it unjustified. The poll also showed strong support for related price‑control measures, with 75 % backing fuel price caps, 86 % favoring lower electricity taxes and 89 % endorsing reduced VAT on food.

Separately, the finance ministry has drafted a law to raise tobacco taxes. The average price of a 20‑cigarette pack could climb from about €8.80 in 2027 to roughly €11.40 by 2030, driven by an increase in the tax component from €4.40 to €5.75 per pack. Officials say the measure aims to protect public health and curb smoking, while also generating additional state revenue – projected at €756 million in 2027 and up to €3.6 billion by 2030. German cigarettes remain cheaper than in neighboring France, where a pack costs around €12.07.