Germany Approves Tobacco Tax Reform, Sending Cigarette Prices Up by 50%

BERLIN – Factory-produced cigarette prices in Germany are set to increase significantly around the turn of the year after the German parliament gave final approval on Friday to a tobacco tax reform proposed by the government, the German News Agency (dpa) reported.

Following the lower house of parliament's (Bundestag) approval of amendments to existing laws on Thursday, the upper house of parliament (Bundesrat) cleared the way on Friday for substantial tax hikes on cigarettes and other tobacco products for the 2027–2030 period.

The tax increases will be passed on to end consumers, resulting in prices rising by roughly 50 percent or more over the period.

Currently, a pack of 20 cigarettes in Germany costs an average of over €8 ($9), but prices are projected to rise to nearly €12 by 2030, according to Finance Ministry projections. Premium brand cigarettes could reach prices of up to €14 per pack.

The government argued that the legal amendment is necessary to strengthen the country's fiscal position and protect public health.

Every year, approximately 130,000 people in Germany die from tobacco-related illnesses. Medical professionals and several politicians hope that higher smoking costs will have a deterrent effect.

According to a 2025 census, nearly one in five people in Germany, or 19 percent, smoke. Of that total, 14 percent of the population aged 15 and over said they smoke regularly, while another five percent smoke occasionally.