On October 15, 2026, the German Bundestag passed an act amending the Tobacco Tax Act. Under the legislation, taxes on tobacco products will be raised regularly over a four-year period. The federal government’s draft bill was approved as amended by the Finance Committee; the final stage of the legislative procedure takes place in the Bundesrat.
- The bill passed with votes from the CDU/CSU and SPD. The AfD, the Greens, The Left, and two CDU/CSU MPs voted against it.
- The increase covers cigarettes, roll-your-own tobacco, cigars, cigarillos, pipe tobacco, heated tobacco, hookah tobacco, and tobacco substitutes. New tax rates for cigars, cigarillos, pipe tobacco, and hookah tobacco will apply from March 1, 2027.
- Model pack prices cited in the bill are reference estimates rather than binding retail prices. The final outcome in the Bundesrat is not yet reflected in the available source reports.
What the Bundestag Adopted
According to the Bundestag press service, the government bill was adopted in the version approved by the Finance Committee on October 14. Amendments introduced by the governing coalition parliamentary groups increase projected additional tax revenue to 1.5 billion euros next year — 750 million euros more than in the original draft — and to 4.461 billion euros in 2030, exceeding the initial projection by 872 million euros.
The exact date when the new tax rates for cigarettes take effect is not specified in the Bundestag or Tagesschau reports.
Model Prices: Reference Estimates, Not Fixed Retail Prices
The original government draft bill cited weighted average retail prices for a pack of 20 cigarettes:
| Year | Projected weighted average pack price (original draft bill) |
|---|---|
| 2027 | €8.77 |
| 2028 | €9.56 |
| 2029 | €10.42 |
| 2030 | €11.36 |
The Finance Committee subsequently amended the bill to generate higher revenue. According to Tagesschau, the average price of a pack will rise by nearly 4 euros to almost 12 euros by 2030, while brand-name cigarettes could cost up to 14 euros per pack. The tax on e-cigarette liquids will rise from 38 cents per milliliter next year to 44 cents by 2030, according to Tagesschau.
Positions of the Government and Opposition
In the bill’s explanatory memorandum, the tax increase is listed among the federal budget consolidation measures agreed upon by the government on April 29, 2026. It also states that the amendment serves public health protection. Finance Minister Lars Klingbeil (SPD), as reported by Tagesschau, cited two objectives: consolidating the federal budget — which he said faced a 34 billion euro gap — and protecting health, particularly among children and adolescents.
Representatives of the tobacco industry, according to Tagesschau, fear that smokers will turn to the black market. The coalition parliamentary groups also saw a risk of growing illicit trade and advocated stronger customs enforcement and EU-wide harmonization of tobacco taxation.
AfD MP Christian Douglas argued that the law serves solely to plug budget holes. The Greens support raising the tobacco tax in principle, but according to MP Sascha Müller consider the price signal too weak, particularly for roll-your-own tobacco. A motion for a resolution submitted by the Green parliamentary group did not win a majority.
Federal Government Commissioner for Drug and Addiction Policy Hendrik Streeck welcomed the legislation. “A higher price can be the impetus to quit smoking,” Tagesschau quoted him as saying. According to 2025 microcensus data cited by the broadcaster, 19% of people aged 15 and older in Germany smoke.
Next Stage — the Bundesrat
In its formal opinion on the government draft bill, the Bundesrat raised no objections. As Tagesschau reported on the morning of October 16, the legislative process concludes in the Bundesrat on Friday. While the chamber of the federal states has the right to lodge an objection, there were no indications of such a move, and the Bundesrat was expected to approve the law.