Germany to raise tobacco tax more than initially planned

An RND report has revealed more details about the German government’s plan to increase tobacco taxes. According to the draft law, a packet of cigarettes could cost 12 euros by 2030.

Germany to increase tobacco tax

On July 10, the German parliament passed its controversial healthcare reform, which included the plan to increase taxes on tobacco and sugary drinks. Now, a draft law seen by RND has revealed more concrete details about the CDU/CSU-SPD coalition’s plan to increase tobacco taxes. 

According to the Finance Ministry’s draft law, the price of a packet of 20 cigarettes could rise to 12 euros by 2030, 40 cents more than previously expected. A packet of 20 cigarettes currently costs an average of 8,50 euros, according to Numbeo.

The Finance Ministry also plans to gradually increase taxes on rolling tobacco, pipe tobacco, cigars and cigarillos. The government will also increase taxes on the liquid used in vapes by one cent per millilitre annually.

The government's increased revenue is to fill a gap in the federal budget. Increasing the tobacco tax is forecast to generate an additional 756 million euros in tax revenue in 2027 and an additional 3,589 billion euros by 2030.

But cigarettes will still be comparatively cheap

“The increase also serves to protect public health and is in line with the federal government’s aim of reducing smoking rates among young people and adults," government representatives said, according to the RND report.

Germany’s smoking laws are relatively relaxed by international comparison. The World Health Organisation (WHO) regularly raises specific concerns about German tobacco laws in its annual international report on government measures to reduce tobacco consumption.

In June 2026, the Tobacco Control Scale (TCS), which assesses policies to control the sale of tobacco in 37 European countries, also concluded that Germany needs to do more to prioritise policies which discourage smoking and that control "remains low".

However, even if Germany increases its tobacco tax as planned in the draft law, buying tobacco will still be a lot more affordable than in neighbouring countries. According to Numbeo, a packet of 20 cigarettes already costs 12 euros in France, 11 euros in Belgium, and 9,56 euros in Switzerland.

Tobacco is also already much more expensive in countries further afield, with a 20-pack setting smokers back 26,83 euros in Australia, 17,31 in the United Kingdom and 17,00 euros in Ireland.