In just a few months, the prices of tobacco products in Germany will rise. Raising the excise duty is part of the government’s strategy to distract smokers from addiction through a higher price. Here’s how much cigarette prices will rise:
A few days ago, the Bundestag voted to raise the excise tax on tobacco products by an average of 10 cents from 2022. A year later, prices will increase by another 10 cents, and in 2025 and 2026 by 15 cents.
The excise tax will be increased on traditional cigarettes, tobacco warmers, e-cigarettes, and cigars and cigarillos. In the case of heated tobacco, which is the closest substitute for a standard cigarette, the excise duty is to be introduced at the same rate as for regular cigarettes.
Raising the excise tax on tobacco products is part of the strategy of the local government to distract smokers from addiction through a higher price. As for the rapidly growing category of the so-called innovative products, i.e. tobacco heaters.
The German legislator stated that they perform the same function as traditional cigarettes, because they provide the body with nicotine, hence it is necessary to increase the excise duty on tobacco heater cartridges.
Since 2016, sales of innovative products in Germany have grown annually by 70%. At the same time, on the basis of the analyses carried out, it was found that the increase in excise duty on tobacco heaters will not cause a breakdown in the heating tobacco market. The German ministry assumes that revenues from the tax on heating tobacco will grow at a rate of around 10% annually.
The latest data show that in Germany one in four adults continues to smoke cigarettes regularly despite the high risk of cancer. According to Katrin Schaller of the German Cancer Research Center (DKFZ), a raise of at least 10 percent is necessary for smokers to quit.