A packet for 12 euros? Cigarettes could soon become significantly more expensive:
It would be bad news for the 16 million smokers in Germany: If the EU ...
n-tv.de/wirtschaft/Zigaretten-koennten-bald-deutlich-teurer-werden-article25908904.html
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EU Proposal Set to Raise Cigarette Costs SharplyBy 2025, a new EU tax hike could raise cigarette pack prices in Germany by nearly 40%, impacting 16 million smokers.
- The EU Commission aims to increase the minimum cigarette tax from 90 to 215 euros per 1,000 cigarettes, driving prices upward.
- Costs for branded cigarette packs in Germany may rise from 8.50 euros to over 12 euros, with rolling tobacco exceeding 18 euros.
- The tobacco industry warns this could boost the black market, where currently one in five cigarettes consumed is untaxed.
- Health experts support the tax hike as an effective strategy to reduce smoking rates, especially among young people.
Such a price shock would fuel illegal trade and that would be a stimulus program for the black market.— Jan Mücke, chief executive officer of the BVTE (Bundesverband der Tabakwirtschaft und neuartigen Erzeugnisse), commenting on the EU’s proposed tobacco tax increases.
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4 days ago · Reading time: ~45 sec.
Summary created with AI assistance · Source: sueddeutsche.de
Summary created with AI assistance · Source: sueddeutsche.de
- The Bundestag plans a final vote Thursday evening; its Finance Committee approved the proposal on Wednesday.
- Under the draft, the average 20-cigarette pack price would rise from €9.10 in 2027 to €11.78 in 2030.
- Under the bill, liquid tax would increase from 38 cents per milliliter in 2027 gradually to 44 cents in 2030.
- The Finance Ministry forecasts €1.5 billion extra revenue in 2027 and €4.5 billion in 2030; tobacco lobby groups dispute the forecast.
Thus, many smokers will not switch from legal cigarettes to rolling tobacco, but from legal cigarettes to illegal cigarettes—our legal companies lose customers and the treasury loses out on tax revenue; the winner is organized crime.— Michael von Foerster, spokesperson for the Association of the German Tobacco Industry (VdR), on the potential shift to illegal cigarettes and impact on legal firms and state revenue
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5 days ago · Reading time: ~45 sec.
Summary created with AI assistance · Source: nw.de
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- The Finance Committee votes on October 14; the Bundestag is due to follow on October 15, while a Bundesrat objection on October 16 is considered highly unlikely.
- The projected average price of a 20-cigarette pack rises from €9.10 in 2027 to €11.78 in 2030.
- Compared with unchanged taxation, the Finance Ministry expects €1.5 billion in additional revenue in 2027 and €4.5 billion in 2030.
- According to the DKFZ, tobacco-related diseases killed around 131,000 people in 2023; cancer researchers support higher taxes for possible smoking cessation.
As a result, many smokers will not switch from legal cigarettes to roll-your-own tobacco, but from legal cigarettes to illegal cigarettes — our legal companies lose customers and the Treasury loses revenue; the winner is organized crime.— Michael von Foerster, spokesperson for the Verband der deutschen Rauchtabakindustrie (VdR), commenting on the potential shifts in smoking behavior and the impact on legitimate firms and tax revenue
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Summary created with AI assistance · Source: pnp.de
Summary created with AI assistance · Source: pnp.de
- The EU Commission suggests increasing tobacco taxes based on countries’ economic strength to reduce tobacco demand.
- In Germany, this could mean a 20% tax rise, making cigarette packs about one euro more expensive.
- Daily smokers of vending machine packs would face at least €182 more annually, with larger packs costing up to €400 extra per year.
- Starting July 1, France bans smoking in public areas like beaches and parks, enforcing €135 fines to protect children.
In his mind, he has 'real horror scenarios. First, we protect people from smoking, then from alcohol, from sugary foods, from unhealthy fatty foods like burgers, doner kebabs, currywurst, ice cream, and all other things that could harm health.'— Michael Jäger, President of the Taxpayers Association of Europe, expresses his concerns about the EU's tax plans.
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