Germany Plans Tobacco Tax Hike, With Cigarette Prices Nearing €12 Per Pack by 2030

Jul.14
Germany Plans Tobacco Tax Hike, With Cigarette Prices Nearing €12 Per Pack by 2030
Germany plans to raise tobacco taxes over the coming years, potentially pushing the average price of a 20-cigarette pack to about €11.78 by 2030. The proposal also covers fine-cut tobacco, cigars, pipe tobacco and e-cigarette liquids.

Key Points

  • Germany plans to raise tobacco taxes more sharply through 2030.
  • A pack of 20 cigarettes could reach about €11.78 by 2030.
  • The current average price of a 20-cigarette pack is around €8.65.
  • E-cigarette liquid taxes would rise by one euro cent per milliliter each year.
  • The proposal is expected to generate billions of euros in additional annual tax revenue by 2030.

2Firsts

July 14, 2026

According to reports by Deutsche Welle (DW) on July 13, 2026, Germany’s Federal Ministry of Finance is preparing a plan to raise tobacco taxes more sharply over the coming years, potentially pushing the average price of a 20-cigarette pack close to €12 by 2030. The Local said the taxation guide was issued by the Finance Ministry and obtained by German media outlet RND.

Cigarette Prices Could Reach €11.78 by 2030

According to Euronews, the proposed increase would take effect gradually. Under the current plan, the average price of a 20-cigarette pack would rise to about €9.10 in 2027, €9.91 in 2028, €10.81 in 2029 and €11.78 in 2030.

The Local reported that the current average price of a 20-cigarette pack in Germany is around €8.65. If implemented, the plan would mark a significant price increase for German smokers by the end of the decade.

Euronews reported that the tobacco tax component per pack is currently around €4 and could rise to €6.19 by 2030.

E-Liquid Taxes Also Included

The plan does not apply only to cigarettes.

The Local reported that taxes on rolling tobacco would also rise annually. For e-cigarette liquids, the tax rate would increase by one euro cent per milliliter each year.

Euronews said the affected products would include fine-cut tobacco, cigars, cigarillos, pipe tobacco and e-cigarette liquids. For e-cigarette users and retailers, the proposal signals continued cost pressure from Germany’s volume-based e-liquid tax system.

Germany already applies a per-milliliter tax on e-cigarette liquids. If the new plan moves forward, e-liquid costs would continue to rise under the tax schedule.

Government Links Tax Hike to Revenue and Public Health

The Local reported that the higher tax rates are expected to generate an additional €756 million in tax revenue in 2027, rising to about €3.589 billion by 2030.

Euronews reported that the government linked the plan not only to fiscal needs but also to public health objectives, including reducing tobacco consumption among young people and adults.

SBS News, citing RND, reported that Germany’s Finance Ministry plans to raise the tobacco tax per pack from around €4 today to €6.19 by 2030, and said the proposal is partly tied to Germany’s fiscal deficit.

Germany’s Tobacco Price Policy May Tighten Further

Germany has long been seen as a relatively lower-priced tobacco market compared with several Western European neighbors. The Local reported that Germany has historically pursued more moderate annual increases of about 10 to 15 euro cents, partly because neighboring markets such as Poland and the Czech Republic offer cheaper tobacco products.

Sharper tax increases could therefore raise not only public health and revenue questions, but also concerns over cross-border purchasing and illicit trade.

For tobacco and nicotine product companies, the proposed tax schedule shows how major European markets are linking fiscal policy, public health and emerging nicotine product regulation. Pricing, excise structure and cross-border compliance risk are likely to become increasingly important factors in Germany’s market outlook.

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Cover Image source: dw


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