Hendrik Streeck, the Federal Government Commissioner for Addiction and Drug Issues (CDU), has voiced strong support for a significant increase in the tobacco tax. Speaking to the “Frankfurter Rundschau” from Ippen-Media, Streeck declared that substantially raising the tax is the correct course of action. He emphasized that price is one of the most effective mechanisms available to deter young people from starting to smoke and to support current smokers in quitting. Furthermore, he characterized the move as adherence to a “clear regulatory principle,” arguing it is wrong to allow businesses to privatize profits while the resulting health consequences are borne by the public.
Tobacco consumption generates enormous economic burdens, causing approximately 30 billion euros in direct healthcare costs annually, alongside further 67 billion euros in wider economic damage. Therefore, Streeck insisted that a substantial part of the additional tax revenue must be channeled directly into public prevention programs, smoking cessation assistance, increased controls, and treatment. He concluded that the higher tobacco tax must serve not only to relieve pressure on the federal budget but also to actively prevent dependence, avoid illness, and protect lives.
As reported earlier this week, the planned rise in the tobacco tax is expected to be steeper than initially projected. Government factions have decided to further adjust the tax rates outlined in the government draft. This measure is specifically intended to strengthen health protection measures.
Previously, media outlets reported that the federal government had been working toward a “gradual” increase. The plan now involves a stepped approach. Currently, a pack of cigarettes costs around eight euros. By 2030, the average pack is projected to cost nearly twelve euros. The changes are slated to take effect in 2027, when the cost will rise to 9.10 euros. Subsequent annual increases are scheduled for 9.91 euros in 2028, 10.81 euros in 2029, and 11.78 euros in 2030. Correspondingly, the amount dedicated to the tobacco tax portion is set to rise from approximately four euros to 6.19 euros by 2030. Additionally, the taxation of processed tobacco-such as tobacco intended for self-rolled cigarettes-will also see an increase.
