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[BUSINESS] · Germany · 13 sources

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Germany plans tobacco tax increase for e-cigarette liquids

Germany is preparing for a planned increase in tobacco taxes on e-cigarette liquids, expected to take effect in January 2027. While there is a general political consensus regarding the tax hike, the specific rate remains a point of contention in the Bundestag.

The Federal Ministry of Finance has proposed a moderate increase to 33 cents per milliliter. However, coalition factions from the CDU/CSU and SPD are pushing for a higher rate of 35 cents per milliliter. Because value-added tax (VAT) is calculated on top of this tax, the total price for consumers will rise accordingly.

The Bündnis für Tabakfreien Genuss (BfTG) has expressed concern that these increases will drive consumers toward the black market. Industry representative Dustin Dahlmann noted that previous tax hikes have already seen the black market share rise from an estimated 40% to 50%. Additionally, industry experts warn that higher taxes may lead to lower-than-expected tax revenues for the state due to shifting consumer behavior.

Entities

Bundestag · Bündnis für Tabakfreien Genuss · CDU/CSU · Dustin Dahlmann · Federal Ministry of Finance · Germany · SPD

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