Germany to Raise Tobacco Tax: Cigarette Pack to Cost 9.10 Euros by 2027

Germany plans to significantly raise tobacco taxes, with a pack of cigarettes costing 9.10 euros from 2027, after Union politicians dropped their opposition to the increase. Smokers will face higher costs starting that year. The Union's parliamentary group leader Thorsten Frei reportedly pushed through the stance during a Tuesday visit to the finance working group. The amendment by Union and SPD proposes higher tax rates than a government draft from July, which already planned annual increases from 2027 to 2030. Cigar and pipe tobacco tax hikes will be milder than originally proposed. The tax increases are expected to generate around 11.6 billion euros in additional state revenue over four years, with total tobacco tax income potentially reaching 21.3 billion euros by 2030. Some politicians warn that actual gains could be lower if consumers switch to cheaper products, other nicotine alternatives, or the illegal market.