Overview
- A Referentenentwurf reported on June 19 proposes annual increases to tobacco taxes from January 1, 2027 through 2030, with the federal government estimating roughly €8.5 billion in extra receipts over the period.
- The ministry’s draft lays out rising annual revenue estimates of about €756 million in 2027, €1.6 billion in 2028, €2.55 billion in 2029 and €3.6 billion in 2030.
- The plan would raise the tax share per 20‑cigarette pack from about €4.40 to €5.75 and is projected to push average pack prices from roughly €8.80 in 2027 to about €11.40 in 2030.
- The Finance Ministry frames the measure as both a public‑health tool to cut smoking, especially among young people, and a way to shore up federal finances, but the draft must still clear interministerial checks and parliamentary approval.
- Political reaction is mixed: health officials and the federal doctors’ chamber support higher levies to reflect health costs, while CDU/CSU MPs have voiced opposition, and tobacco revenues rose only recently after a long period of stability.