Dispute over tobacco tax: Who really benefits from the price increases?

Dispute over tobacco tax: Who really benefits from the price increases?

In the shadow of the government negotiations, a dispute over tobacco tax rages that could secure crucial income for the state. Loud today.at If this tax brings around two billion euros annually to the Ministry of Finance, the sales tax is added, the sum even increases to 2.7 billion euros. But while the tobacco tax is traditionally an important income point, alternative nicotine products are becoming increasingly popular, which leads to pressure on tax exemptions. Many young people resort to Pouches and e-cigarettes, the ingredients of which are not subject to tobacco tax, which causes the government to consider an alignment with other European countries such as Italy and Hungary that have already collected taxes.

Significant tax revenue and price increases

In addition to the discussion about taxation, there are also solid figures: Loud tabakland.de In 2023, Germany took around 14.7 billion euros through the tobacco tax, which makes it one of the most profitable consumer taxes in the country. Despite the efforts to reduce tobacco consumption through tax increases, the price of cigarettes remains a hot topic. In 2024, the price for a box of cigarettes is 8.40 euros, comparable to 3.00 euros in 2002. These price increases are the result of several tax increases and increased costs for raw materials, packaging and logistics that can be felt in the entire industry.

The discussion about the reform of tobacco tax could not only secure income, but also act as a steering instrument in order to reduce consumption and to draw attention to the health risks of smoking. Despite falling sales figures and a reduction in cigarette consumption, the market remains volatile due to the variety of products and flavors and challenging for supervision.