Tobacco tax to rise more than previously planned

The federal government plans a steeper tobacco tax increase by 2030. A pack of cigarettes is set to cost nearly twelve euros.

The federal government plans a steeper tobacco tax increase by 2030 than originally envisioned. This is outlined in a drafting aid from the Federal Finance Ministry for the coalition factions.

A pack of cigarettes is therefore set to cost 9.10 euros in 2027, 9.91 euros in 2028, 10.81 euros in 2029 and 11.78 euros in 2030. The tobacco tax share rises to 6.19 euros by 2030.

The higher levies are expected to generate around 800 million euros in additional annual revenue for the federal government. By 2030 the total increase amounts to about 4.5 billion euros. Government circles state that the increase also serves to protect public health.

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Beach and terrace scene with no-smoking signs illustrating Spain's new tobacco ban
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Government approves tobacco law reform banning smoking on beaches and terraces

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The Council of Ministers approved on Tuesday the bill updating the 2005 anti-tobacco regulations. The law expands smoke-free spaces and equates electronic cigarettes and other products with traditional tobacco.

The government of President Gustavo Petro submitted a new tax reform bill to Congress aimed at collecting 21.9 trillion pesos in 2027.

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The Bundestag passed a reduction of the air travel tax in the evening. Lower rates from before May 2024 will apply starting July 1.

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