A pack of 20 cigarets in Germany presently costs roughly €8.05, but that could soon be about to change following a vote by the Bundestag to gradually boost tobacco taxes.Under the estimates underpinning the proposed legislation the price of a standard pack of cigarets will climb to €8.77 in 2027, €9.56 in 2028, €10.42 in 2029 and €11.36 in 2030. Some premium brand cigarets could be priced at up to €14 and hand-rolling tobacco is also expected to become considerably more expensive.
Therefore, Germany’s cigaret prices are slowly approaching those of other European countries, but are still likely to be lower than prices in some of the continent’s most expensive markets, including Ireland, France and the Netherlands. The German government says the rise is expected to raise a further 12bn euros over four years.
In 2027, revenue is expected to rise from around €1.5 billion to €4.5 billion by 2030. The government generated €17.6 billion in income from tobacco duty last year. But the tobacco industry is not convinced the government will earn as much as it expects, with industry leaders saying that greater levies could potentially drive consumers more to the illegal market or to cheaper cigarets from other EU countries. Legal tobacco businesses could take the biggest blow.
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