German parliament backs tobacco tax hike for revenue, public health

Germany's lower house of parliament late Thursday approved a phased-in increase in the tobacco tax that is expected to raise the average price of a pack of 20 cigarettes from roughly €8 ($9) now to about €9 next year and nearly €12 by 2030.

The Bundestag backed the measure with votes from the governing coalition of Chancellor Friedrich Merz's center-right CDU/CSU alliance and the center-left SPD. Officials project the step will generate roughly €12 billion in extra federal revenue over the four years.

The increases will take effect step by step each January from 2027 through 2030. Brand cigarettes could cost as much as €14 by the end of the period. Fine-cut tobacco used for rolling cigarettes will also become significantly more expensive.

The figures are average projections based on the higher rates the coalition approved; manufacturers will set the actual retail prices, which can vary by brand.

The government has cited both the need to consolidate the federal budget and protecting public health. The additional revenue is not earmarked and will enter the general budget. Past tobacco tax rises have mainly helped close fiscal gaps.

Health experts see higher prices as an effective way to encourage people to quit. The German Cancer Research Center has reported that about 131,000 people died in Germany in 2023 from tobacco-related diseases. A 2025 survey found that 19% of people age 15 and older in the country smoke.