German coalition proposes doubling tobacco tax increase, targeting up to €13.80 per pack

Union and SPD parliamentarians have tabled a bill amendment that would double the previously agreed tobacco tax increase, extending higher rates to all tobacco categories such as fine cut and cigars. The proposal seeks to boost federal revenues, with the government estimating an extra €756 million in the next fiscal year. Under the revised schedule, the average price of a 20-cigarette pack would rise to about €9.15-€9.30 in 2027 and, after four years, could reach between €13.25 and €13.80.

The move comes amid a sharp decline in tobacco tax collections, which fell from €17.6 billion in 2025 to €6.8 billion in the first half of 2026, hinting at growing consumption of smuggled products. Lawmakers argue the higher taxes are primarily a fiscal measure rather than a public-health initiative. The amendment is now pending debate in the Bundestag.