Smoke for smokers: Cigarette prices could reach record level by 2030

A gradual price increase from 2027

The federal government had introduced a plan to increase the tobacco tax in early July. Under the new proposal, the financial burden for smokers may be even bigger than originally anticipated, reports German mediaPeriscope broadcast.

If the draft is approved, the average price of a pack of cigarettes will increase annually:

2027: 9,10 euros per package;

2028: 9,91 euros;

2029: 10,81 euros;

2030: 11,78 euros.

The anticipated price for 2030 is about 40 cents higher than the one mentioned in the government cabinet's earlier decision. However, these are only average values, as real prices will depend on brand, package size and production policies.

Tobacco Tax Increases Significantly

Under the new plan, the tax share in the price of a pack of cigarettes will rise considerably. By 2030, the tobacco tax could reach 6,19 euros per package, while currently it is considerably lower.

The increase will affect not only ready cigarettes but also cigarettes for hand-tucked cigarettes, which are also expected to take on more.

Government Aims for More Revenues and Health Protection

The German government argues tax hikes have two main objectives. On the one hand, additional income insurance is targeted to cover gaps in the federal budget. On the other hand, authorities stress that higher prices can help reduce tobacco consumption, especially among young people, discourage smoking and encourage more adults to give up the habit.

Euro billion in additional state revenues

According to previous estimates, the increase in tobacco tax is expected to bring about 8.5 billion euros in additional revenues by 2030. If the new version of higher taxes is approved, this amount may grow further.

However, the final income will also depend on the behavior of consumers. Part of the smokers may continue to buy cigarettes despite higher prices, while others may reduce consumption, quit smoking or navigate toward cheaper products and purchases outside Germany.

Not a Final Decision yet

Authorities stress that the price of 11,78 euros per package is not yet approved. The draft should pass parliamentary procedures, and during this process there may be changes to tax rates, implementation deadlines and financial calculations.

Meanwhile, the proposal is expected to spark strong political debate. Supporters consider the price hikes an effective tool for reducing tobacco consumption, while critics warn that the move would particularly burden low-income families and boost illegal cigarette trade, as well as shopping in neighbouring countries.

If the proposal is approved, Germany will be among the countries where smoking will cost markedly more in the years to come. Periscope.