German politicians drop opposition to tobacco tax hike, raising cigarette prices

German politicians have dropped their opposition to a tobacco tax increase, making cigarettes more expensive than originally planned. A pack of cigarettes will cost 9.10 euros starting in 2027, up from the current price of around 8 euros. The conservative Union party's finance politicians conceded after weeks of resistance, according to a report by the "Bild" newspaper. The amended legislation, backed by the Union and SPD, now includes higher tax rates than the government's original July proposal, which had planned annual increases from 2027 to 2030. The tax hikes are expected to generate 11.6 billion euros in additional state revenue over four years, with total tobacco tax income projected at 21.3 billion euros by 2030. Cigar and pipe tobacco taxes will rise less sharply than initially proposed by Finance Minister Lars Klingbeil. Some politicians warned that actual gains could fall short if consumers shift to cheaper products, alternative nicotine items, or the illegal market.