Cigarette prices rise rapidly: smokers now have to dig deep into their pockets!

Cigarette prices rise rapidly: smokers now have to dig deep into their pockets!

Österreich - Tobacco prices in Austria rose by over 5% compared to the previous year due to an increase in tobacco tax in April 2025. The increase means an additional load of around 30 cents per pack for smokers, which could lead to an increase in prices. The Austrian government expects additional income of over 50 million euros from this tax increase for 2025, whereby further climbs of tobacco tax are not excluded due to the tense budget situation. As early as 2026, the additional income could increase to around 100 million euros and even increased to 200 million euros by 2027.

such as 5min.at, the tobacco industry sees the price increases critically and warns of possible "massive market resolutions" that could lead to the prices of up to 60 cents per pack. Companes, especially in rural regions, are very affected and lose around 9 million euros this year due to lower profit margins. The transformer chairman emphasizes that many of them live with physical restrictions and may not be able to carry the economic stress through the tax increases.

Danger of the black market

Another problem is the increase in the black market. 12% of tobacco consumption in Austria is already in charge of non -taxed products. The fears of health experts have grown, because the EU plans to reduce tobacco tax to reduce tobacco consumption. It is estimated that the illegal tobacco trade in some European countries, such as France and Ireland, could already achieve significant proportions of total consumption, which shows that high taxes can also lead to an increase in smuggling.

According to the WHO, a higher tobacco taxation reduces consumption most effective, which is why close coordination between the EU countries is required. Several studies show that higher tax rates in countries such as France and Ireland led to a decline in smoking quota, while in countries such as Bulgaria and Greece the smoking rate and illegal trade have increased.

tax increases for 2024 and beyond

The situation is similar in Germany. According to [fre.de] (https://www.fr.de/wirtschaft/tabakstei-2024-tabelle- index-more-more and more-92754023.html), almost 60 billion cigarettes were sold from January to November 2023, which corresponds to a decline of about 2% compared to the previous year. The German authorities have gradually increased taxes on tobacco products in recent years. For 2024, however, a tax break is planned for most smoking products, which would be the first of such a kind since January 2022.

From 2025, however, tax increases will occur again. The planned tax increases include cigarettes with 11.71 cents per piece and pipe tobacco at 21 euros per kilogram. Likewise, the tax rate for so -called substitutes such as liquids increases to 26 cents per milliliter. These constant adjustments mean that many tobacco consumers turn to cheaper brands or buy them in large packs.

The liveliness of the market is on the brink. While health -political measures in the EU to reduce tobacco consumption and the corresponding tax revenue are based, industry maintains the argument that high taxes could make it difficult to switch to less harmful products. A dialogue between the industry and politics is in demand - especially to clarify how to deal with the challenges of the black market and the financial burdens.