BERLIN — Germany's coalition government plans to raise tobacco taxes more sharply than previously intended, pushing the price of a standard pack of 20 cigarettes to nearly 12 euros by 2030, up from roughly 8 euros today.
The steeper increases were prompted by a shortfall in the federal budget after the government decided not to cut a tax subsidy for statutory health insurers as deeply as planned, leaving a funding gap from 2027. Tax revenue from the measure is expected to reach about 800 million euros annually, with cumulative gains of roughly 4.5 billion euros through 2030. The tobacco tax component of a pack will climb from about 4 euros now to 6.19 euros.
Average pack prices will rise in stages — 9.10 euros in 2027, 9.91 in 2028, 10.81 in 2029, and 11.78 in 2030. Taxes on rolling tobacco, pipe tobacco, cigars, and e-cigarette liquids will also increase annually. Officials say the policy also aims to reduce smoking rates and protect public health.