The German government has approved a draft amendment to the Tobacco Tax Act that would introduce annual tobacco tax increases from 2027 to 2030, raising the average retail price of a pack of 20 cigarettes from EUR 8.77 in 2027 to EUR 11.01 by 2030. The proposal also increases taxes on fine-cut tobacco, pipe tobacco, cigars, cigarillos, and e-cigarette liquids.

The government estimates the measures will generate an additional EUR 756 million in tax revenue in 2027, rising to EUR 3.59 billion by 2030, while supporting both fiscal consolidation and public health objectives by discouraging smoking.

However, tobacco industry representatives have criticised the plan, warning it could disrupt the legal market and arguing that the government’s revenue projections may be overly optimistic.