Health Experts Push for Tax Hike on Tobacco and Alcohol to Slash Healthcare Costs
Politics

Health Experts Push for Tax Hike on Tobacco and Alcohol to Slash Healthcare Costs

Hendrik Streeck, the federal government’s commissioner for drugs and addiction (CDU), is strongly urging for increased taxes on both alcohol and tobacco. Commenting to the “Rheinische Post”, Streeck asserts that these products are currently too inexpensive in Germany when considering the substantial damage they inflict.

According to Streeck, while the profits are generated at the point of sale, the subsequent costs-which include impacts on insurers, employers, families, clinics, and the broader healthcare system-are borne by everyone else. He argues that higher taxes are necessary on tobacco and alcohol based on the “polluter pays” principle, stating this is a matter of fair prevention, not mere symbolic policy.

Streeck contends that raising prices would be particularly effective in shielding young people from starting such habits and would ultimately help reduce long-term medical expenses. He dismisses potential lost tax revenue as an opposing argument, arguing that the state should not be structured around the premise that people will continue smoking, drinking, becoming ill, and dying prematurely.

While acknowledging the possibility of a shift towards a larger black market, Streeck emphasizes that illicit activity cannot be used to veto necessary regulations. “Naturally, we must take the black market seriously, but we cannot accept that a violation of the rules becomes a right to veto,” he stated. “Health must be valued more highly than illness; that must be the political mandate.”

The push for higher levies is also echoed by medical professionals. Klaus Reinhardt, president of the German Medical Association, confirmed that from a public health standpoint, increased taxation of tobacco and nicotine products is both correct and necessary. He noted that smoking remains one of the most severe preventable health risks. Reinhardt added that the treatment alone for tobacco-related diseases costs the healthcare system approximately 30 billion Euros annually, underscoring how much the system could be relieved by preventing people from starting to smoke or by helping existing smokers quit.