German tobacco tax plan could push cigarette prices above €11 by 2030

WorldBusiness & Finance
20 Jun 2026 • 12:21 AM MYT
DPA International
DPA International

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Image from: German tobacco tax plan could push cigarette prices above €11 by 2030
FILE PHOTO - A woman sits in a car and holds a cigarette. (is associated with: «German tobacco tax plan could push cigarette prices above €11 by 2030») Sebastian Kahnert/dpa

Cigarettes could become significantly more expensive in Germany under plans by the Finance Ministry to gradually raise tobacco taxes over the coming years.

According to a draft bill seen by dpa on Friday, the average price of a pack of 20 cigarettes could rise from around €8.80 in 2027 to approximately €11.40 ($13) by 2030.

The tax component of the retail price would increase from about €4.40 to €5.75 per pack. The planned increases would also apply to other common tobacco products.

A Finance Ministry spokesman said the proposal would "also serve to protect public health and is in line with the goal of reducing smoking rates among young people and adults."

The spokesman added that strengthening government revenues was a key part of efforts to consolidate public finances.

The ministry expects the measure to generate billions of euros in additional revenue. According to the draft, extra tax income would amount to around €756 million in 2027, rising to €1.6 billion in 2028, €2.5 billion in 2029 and €3.6 billion in 2030.

Cigarettes remain relatively cheap in Germany compared with neighbouring Western European countries. According to the German Cigarette Association, a pack of 20 cigarettes cost an average of €7.33 in Germany in 2024, compared with €12.07 in neighbouring France.

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