A modification proposed by the Union (CDU/CSU) and SPD factions suggests that the increase in tobacco tax will be steeper between 2027 and February 2031 than currently planned by the federal government. According to reporting by the “Rheinische Post” (Friday edition), this amendment seeks to significantly raise federal tax revenue.
Specifically, the proposed tax rate for cigarettes is slated to increase in several stages until February 2031, reaching a total of 38.19 cents per stick. The existing plan previously anticipated an increase to 35.8 cents per stick by 2030. The detailed proposal mandates increases to 29.49 cents in 2027, 32.15 cents in 2028, 35.04 cents in 2029, and finally to 38.19 cents per cigarette up until February 14, 2031.
Furthermore, the proposal calls for stronger tax hikes not just on cigarettes, but also on cigars, cigarillos, shredded tobacco, and pipe tobacco. The goal of these enhanced measures is to dramatically boost revenue for the federal government. The “Rheinische Post,” referencing the amendment, notes that the 2027 increases alone are projected to generate approximately 1.5 billion euros, which is 766 million euros more than initially estimated. For the year 2030, the expectation for additional revenue rises to 4.4 billion euros, a substantial increase compared to the original draft law’s estimate of 846 million euros less.
