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Donovan, B. (2026, October 16). European country hikes taxes on guilty pleasures despite outcry. The Independent. https://www.independent.co.uk/news/world/europe/germany-hikes-taxes-cigarettes-drinks-alcohol-b3068180.html
Donovan, Brittney. “European country hikes taxes on guilty pleasures despite outcry.” The Independent, 16 Oct. 2026, https://www.independent.co.uk/news/world/europe/germany-hikes-taxes-cigarettes-drinks-alcohol-b3068180.html.
Donovan, Brittney. “European country hikes taxes on guilty pleasures despite outcry.” The Independent, October 16, 2026. https://www.independent.co.uk/news/world/europe/germany-hikes-taxes-cigarettes-drinks-alcohol-b3068180.html.
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In Germany, the Bundestag voted to gradually increase tobacco taxes starting from 2027, with cigarette prices expected to reach €11.36 per pack by 2030. This move is projected to raise an additional €12 billion over four years for the government. The average cost of a pack will rise incrementally: €8.77 in 2027, €9.56 in 2028, and €10.42 in 2029. While Germany's cigarette prices are catching up with other European countries, they will still be lower than those in markets like Ireland, France, and the Netherlands.
The far-right AfD party has criticized the increase, arguing that it contradicts the government’s public health goals while also aiming to boost tax revenues. Despite opposition, this measure is part of a broader initiative targeting cigarettes, sugary drinks, and alcohol to promote healthier lifestyles and generate significant revenue.
The measure is expected to raise more than €12 billion ($13.5 billion) for the state between 2027 and 2030.
The revenue will help offset cuts to federal health insurance subsidies.