Germany plans tobacco tax hike, aims for €8.5 billion extra revenue by 2030

The German federal government will raise the tobacco excise tax in four stages starting 1 January 2027. A 20‑pack of cigarettes is projected to cost €8.80 in 2027 and rise to €11.40 by 2030, with the tax component climbing from €4.40 to €5.75 per pack. The Finance Ministry expects the measure to generate €756 million in 2027, €1.6 billion in 2028, €2.55 billion in 2029 and €3.6 billion in 2030 – about €8.5 billion in total – all flowing to the federal budget. Finance Minister Lars Klingbeil says the increase serves both budget consolidation and public‑health goals, aiming to curb smoking, especially among young people. The tax rise will also apply to other tobacco products and is intended to bring Germany’s prices closer to the EU average.