Buying cheap cigarettes in Germany? Excise duties are rising sharply there too

The German government has approved significant increases in excise duties on tobacco, which will impact consumers who frequently travel from the Netherlands to purchase cheaper products. Starting next year, tobacco prices will rise annually, with a pack of twenty cigarettes expected to cost 11.36 euros by 2030, up from the current average of 8.05 euros. These measures, which also target loose tobacco and vape liquids, are designed to boost the German treasury and improve public health. The total tax revenue from these tobacco hikes is projected to reach over 12 billion euros between 2027 and 2030.

In addition to tobacco, Germany is introducing new taxes on sugary soft drinks and higher duties on certain alcoholic beverages. Beginning in 2027, soft drinks containing more than 5 grams of sugar per 100 milliliters will face a levy, while taxes on spirits, sparkling wine, and mixed alcoholic drinks will rise by 20 percent. However, beer and still wine are excluded from these additional levies. Officials estimate that these combined fiscal measures will help offset health insurance costs and curb sugar-related medical expenses.