Explainer

Why is Germany pushing cigarette prices toward twelve euros?

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After German lawmakers approved a stepped tax increase, tagesschau projects the average price for a pack will climb from 8.05 euros today to 11.36 euros by 2030.

Average pack price
  • 2026 (current)€8.1
  • 2030€11.4

Health advocates cite about 131,000 yearly deaths and 100 billion euros in social costs, with drug commissioner Hendrik Streeck declaring: I have fought for this for a long time and have not only made friends doing so.

“I have fought for this for a long time and have not only made friends doing so.”

Hendrik Streeck

To address tight public finances, Finance Minister Lars Klingbeil expects the tax hike to raise almost 12 billion euros.

€12bn

Extra tax revenueSource: The Independent · 16.10.2026

The tobacco industry disputes that windfall, with lobby chief Jan Mücke warning that disproportionately strong tax jumps lead to an increase in illegal cigarette trade and more purchases in low-price neighbouring countries.

“disproportionately strong tax jumps lead to an increase in illegal cigarette trade and more purchases in low-price neighbouring countries.”

Jan Mücke

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The story

Bundestag approves stepped tobacco tax rise, with pack prices seen near 12 euros by 2030Read the article

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