The Bundestag has approved a measure to increase the tax on tobacco products. Late Thursday evening saw nearly unified votes from the Union and SPD parties supporting the plan, while all other factions, alongside two individual members of the CDU/CSU group, voted against it. The plan outlines a planned, regular increase in the tax on tobacco products spanning four years.
According to the draft legislation, starting in 2027, the average retail price for a small pack of 20 cigarettes is projected to be 8.77 euros. This will rise to 9.56 euros in 2028, 10.42 euros in 2029, and 11.36 euros in 2030. These tax increases will also apply to other products, including shredded tobacco, pipe tobacco, heated tobacco, water pipe tobacco, and substitutes for tobacco goods.
The rationale provided for the legislative change is the protection of public health and alignment with sustainability goals, specifically aiming to reduce the rates of smoking among both young people and adults. The federal council has expressed no objections to the government’s draft law, as detailed in the statement from the chamber of the states.
