Germany’s ruling coalition has agreed to increase tobacco excise duties more sharply than originally proposed, with the average price of a pack of cigarettes expected to rise from around EUR 8 today to EUR 11.78 by 2030.

Under the revised plan, cigarette prices would reach approximately EUR 9.10 in 2027, exceeding the EUR 8.77 projected under the tax schedule approved by the federal cabinet just a week earlier. The coalition says the higher taxes are intended to strengthen public health by reducing smoking rates while generating additional revenue to help finance healthcare spending, including hospitals and inpatient care.

According to German media, the revised excise rates could raise around EUR 800 million more per year for the federal budget than the original proposal, as the government seeks to address budget shortfalls while maintaining healthcare commitments.

The tobacco industry has criticized the proposal. The Bundesverband der Tabakwirtschaft und neuartiger Erzeugnisse (BVTE) warned that further tax increases could undermine the legal tobacco market by encouraging cross-border shopping and illicit tobacco trade.