(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.
Streeck calls for tax revenue to fund prevention
Hendrik Streeck (CDU), Germany’s Federal Government Commissioner for Addiction and Drug Issues, has voiced support for a substantial increase in tobacco taxes, arguing that higher prices remain among the most effective policy tools for discouraging young people from taking up smoking while encouraging current smokers to quit. He also framed the proposal as a matter of regulatory fairness, contending that the financial burden of smoking-related health consequences should not fall on the public while profits generated by tobacco sales remain in private hands. According to Streeck, tobacco use generates approximately 30 billion euro in direct healthcare costs each year, in addition to an estimated 67 billion euro in broader economic losses. Against that backdrop, he argued that a dedicated share of the additional tax revenue should be reserved for prevention programs, smoking-cessation services, enforcement measures, and medical treatment rather than being used solely to ease pressure on the federal budget. In his view, the proposed tax increase should serve not only as a source of government revenue but also as a public health measure designed to reduce addiction, prevent disease, and improve health outcomes.
Claudia Moll, an SPD health policy spokesperson, described the planned tobacco tax increase as understandable but expressed skepticism that it would substantially reduce smoking rates. Drawing on her own unsuccessful efforts to quit smoking, including attempts involving acupuncture and hypnosis, she argued that many smokers would continue purchasing cigarettes despite higher prices by adjusting other areas of household spending. She also warned that significantly higher tobacco taxes could strengthen the illicit tobacco market. While Moll said she would prefer any additional tax revenue to be directed toward the healthcare system rather than the general federal budget, she nevertheless maintained that higher excise taxes were broadly justifiable. She added that, if such an approach were adopted, comparable tax increases should apply across all categories of alcoholic beverages rather than being limited to spirits.
