Germany to raise tobacco taxes, boosting state revenue

Germany's Federal Ministry of Finance has drafted a law to increase excise taxes on cigarettes and other tobacco products. The plan would raise the average price of a 20‑cigarette pack from about €8.80 in 2027 to roughly €11.40 by 2030, with the tax component rising from €4.40 to €5.75 per pack. The government says the measure aims to protect public health by reducing smoking rates and to strengthen public finances. Projected additional tax revenues are €756 million in 2027, €1.6 billion in 2028, €2.5 billion in 2029 and €3.6 billion in 2030, totalling about €8.5 billion over the decade. The increase will also apply to vaping products and tobacco substitutes, with specific rate adjustments for each category.