Germany's published tobacco tax amendment sets Oct. 21 as its start date, putting its wording at odds with rate increases planned for 2027 that the Finance Ministry says remain on schedule.
The law was published Oct. 20, and its start-date clause specifies the following day. The ministry called that provision a technical error. It said it had informed the customs authority and industry groups and was seeking a correction.
Under the final parliamentary text, tax increases for cigarettes, fine-cut tobacco and e-cigarette liquids are scheduled to begin Jan. 1, 2027. Increases for cigars, cigarillos, pipe tobacco and water-pipe tobacco are scheduled for March 1. The published clause addresses when the law starts; the ministry maintains that the higher rates will apply on the planned dates.
For 2027, the cigarette tax formula adds 14.34 euro cents for each cigarette to a charge of 21.05% of its retail price, subject to a statutory minimum. The formula does not establish what a pack will cost at retail.
The Bundestag's Finance Committee estimated that the changes would add €1.507 billion to federal tax receipts in 2027 and €4.461 billion in 2030. Its estimates assume the added tax cost will be passed on to consumers. The government presented the increases as a way to help close a federal budget gap and reduce smoking.
Parliament raised the proposed rates beyond the government's original draft before approving the bill Oct. 15. The first planned rate increases are due Jan. 1, 2027.
