Wednesday, April 29, 2026

Current and Future Tobacco Tax in Germany?

 The current tobacco excise duty (Tabaksteuer)....since 1 January 2026....isaround 12.3 cents per cigarette.   

You can figure the ad valorem tax to around 19.84 percent of the retail selling price (Kleinverkaufspreis / KVP).  

Pack of smokes.....3.91 Euro of excise duty tax.

End of the story?  NO.  Then the VAT is figured.  VAT is currently at 19-percent, and by 2027....likely to extend to 21-perccent.

So...one  pack costs around 9.50 Euro (20 smokes).

More coming?

Well....there's a draft being pushed.  A pack....after this new add-on tax occurs....will be in the 10.50 Euro range.

The real end of the story?  My humble belief is that by the end of 2028....at least another 50 Euro-cents of tax will be added.

I personally don't care (I've never smoked)....but there's around 11-million Germans (age 18 to 90).....who smoke, and a fair number are at the poverty line.  Those unhappy folks might want to one day want a opposition political stance. Since all this tax-happy stuff is CDU-SPD related.....I wonder what opposition party this group would hang upon?

Any ideas?

No comments: