Cigarettes may top €11 a pack as European country hikes taxes on guilty pleasures despite outcry

Tobacco duties move higher

Lawmakers approved a substantial increase in tobacco taxes on Thursday. A pack of cigarettes in Germany is projected to cost more than €11 by the end of the decade.

Opposition parties objected that the change would add costs for consumers. They also warned that higher taxes could expand the black market.

Soft drink levy from 2027

The rate will be €0.26 per litre for drinks meeting that threshold, rising to €0.32 per litre for products with more sugar. The finance ministry forecasts revenue of €690 million in 2027 and €925 million in 2028.

Health costs and revenue plans

The government expects the proceeds to help make up for reductions in federal health insurance subsidies. The finance ministry puts annual healthcare costs linked to sugary drink consumption at about €2.1 billion.

Alcohol duties are also set to increase by 20% from 2027 for spirits, sparkling wine and alcopops. Berlin expects the changes to bring in hundreds of millions of euros more, while beer and still wine will not be affected.

Britain also revises sugar rules

The measures focus on products often regarded as affordable treats rather than essential goods. Britain is pursuing a separate change to its sugar levy by lowering the taxable threshold and bringing more drinks within its scope.