Germany's coalition agrees to raise tobacco tax, pushing cigarette prices to 9.10 euros by 2027

Germany's coalition government has agreed to raise tobacco taxes more sharply than originally planned, with Union finance politicians dropping their resistance. A pack of 20 cigarettes could cost 9.10 euros on average in 2027. The revised plan, submitted by CDU/CSU and SPD, would generate approximately 1.5 billion euros in additional revenue in 2027 and 11.7 billion euros total from 2027 to 2030. Prices are projected to reach 11.78 euros per pack by 2030. The cabinet approved the original draft in July, but the coalition's amendment proposes higher tax rates. Disagreements remain over taxing fine-cut rolling tobacco ahead of the Bundestag's second and third readings.