Overview
- News reports Tuesday said the CDU/CSU–SPD coalition will raise the tobacco tax this year to offset revenue losses tied to planned relief, including a tax‑free €1,000 payment for employees.
- The family doctors’ association backed higher prices but demanded a legal earmark so the extra revenue funds prevention, cessation, and treatment in the health system.
- Federal drug commissioner Hendrik Streeck supported the increase and said the proceeds should go to counseling, medication, and low‑threshold quit services rather than only filling the budget.
- Under current law the existing rates run until February 14, 2027, yet the government plans to move up a post‑2027 increase that a health‑finance commission had recommended.
- Tobacco taxes brought in about €15.6 billion in 2024, which makes the allocation of any new intake a major choice for both fiscal planning and public‑health programs.