(de-news.net) – Germany’s governing coalition plans to raise tobacco taxes more than previously proposed, increasing cigarette prices to nearly 12 euros by 2030. The revised plan is intended to help address a projected budget gap while supporting public health objectives by discouraging smoking.

According to a draft prepared by Germany’s Federal Ministry of Finance for the governing coalition parties and reported by media outlets, the ruling CDU/CSU–SPD coalition intends to raise tobacco taxes in a more pronounced manner than previously expected. Under the revised proposal, the average price of a pack of cigarettes would increase gradually from about 8 euros today to nearly 12 euros by 2030, placing the projected price about 0.40 euro above the path approved by the Federal Cabinet earlier this week. The proposal would also increase taxes on fine-cut tobacco used for roll-your-own cigarettes, reflecting a parallel adjustment across tobacco products.

Expert panel favored larger increase than revised proposal

The revision follows the coalition’s decision to scale back previously planned reductions in federal transfers to Germany’s statutory health insurance system, a move that is expected to leave a funding gap in the federal budget beginning in 2027. To help address that shortfall, higher tobacco duties are projected to generate roughly 800 million euros in additional annual revenue beyond earlier estimates, raising cumulative tobacco tax receipts by nearly 4.5 billion euros by the end of the decade.

Government officials, according to the reports, characterized the proposal as a moderate tax increase designed to support both fiscal consolidation and public health objectives. They said the revised approach remains consistent with the administration’s broader goal of reducing smoking rates among both adults and adolescents. Although an Expert Commission established to support the health savings package had recommended an even larger increase in tobacco taxes, the updated schedule would still raise the projected average price of a pack of cigarettes to 9.10 euros in 2027, 9.91 euros in 2028, 10.81 euros in 2029, and 11.78 euros in 2030.