The last time the tobacco tax in Germany was increased was six years ago. Since then, politicians and doctors have been calling for even higher tobacco duties and now, a draft law could see that happen.

The cost of smoking in Germany

In an effort to stop people from smoking in Germany, a draft law by the Federal Ministry of Finance will see the tobacco tax levied on a single packet of cigarettes increase by around 8 cents from 2022 to 2026. However, the tax could increase further before the law is finalised. “So far, only a moderate increase is planned - but in the interests of health protection we can imagine increasing the tobacco tax on combustion cigarettes more than previously planned,” said the SPD’s rapporteur on excise taxes, Michael Schrodi. His CSU counterpart, Sebastian Brehm, has also suggested tobacco tax could still increase.

If the two politicians push for the tobacco tax to be increased, and get their parties behind them, then it is feasible that the tobacco tax could increase by more than 8 cents from 2022. The exact value will be determined during internal negotiations.

Politicians to get involved

Schrodi believes that the tax increase contained in the draft bill as it currently stands is too low, as it is proven that higher tobacco prices lead to more people giving up smoking, as well as deterring people from even starting in the first place. "If we increase price sensitivity among consumers, this would have positive consequences - for the health of individuals and for our entire society."

Schrodi and Brehm have also called for shisha tobacco to be taxed more. "Shishas are particularly attractive to young people. They can be the entry point to cigarette smoking," says Schrodi. He compared shisha with alcopops, which were subject to a special tax around 20 years ago.