Germany’s Finance Ministry is planning a gradual increase in tobacco taxes through 2030, a move that would significantly raise cigarette prices while generating billions of euros in additional revenue, according to Tobacco Journal .

Under the proposal, the average price of a pack of 20 cigarettes would rise from about EUR 8.80 in 2027 to around EUR 11.40 by 2030. The increases would also apply to other tobacco products.

Health and Revenue Goals

The Finance Ministry said the measure is intended to improve public health and reduce smoking rates, particularly among young people, while helping to strengthen public finances.

The government estimates the tax hikes would generate an additional EUR 756 million in 2027, rising to EUR 3.6 billion annually by 2030.

Higher Prices to Deter Smoking

Health advocates have long called for higher tobacco prices in Germany, where cigarettes remain cheaper than in several neighbouring countries. In 2024, a pack cost an average of EUR 7.33 in Germany, compared with EUR 12.07 in France.

The proposal comes as tobacco tax revenues continue to rise, reaching EUR 17.4 billion in 2025.