Germany’s federal government is preparing a significant increase in tobacco taxes, according to a draft from the Federal Ministry of Finance reported by Tobacco Journal.

The proposal includes an average tax rise of nearly 13% from September 2026, followed by another increase in January 2027. The excise per cigarette would rise from 12.28 cents to 12.90 cents, and then to 13.74 cents, while the ad valorem tax per pack would also increase.

Based on official estimates, the average price of a cigarette pack in Germany would climb from €7.76 to €8.90 in September and €9.48 in 2027, with premium brands expected to exceed €10.

Roll-your-own tobacco and heated products would also see higher taxes, with fine-cut tobacco facing comparatively larger increases.

The plan, which aims to raise €2.8 billion for energy-related relief measures, is set to enter the legislative process in May, with a parliamentary vote scheduled for 12 June 2026 and final approval pending in the Bundesrat.