German tobacco tax hike mistakenly comes into force months early

A blunder by Germany's Ministry of Finance has seen a hefty tax increase on cigarettes and other tobacco products come into force earlier than expected.

The price of factory-produced cigarettes in Germany was due to rise sharply at the turn of the year after the German parliament gave final approval on Friday to the government's tobacco tax reform.

However, the law was gazetted on Tuesday, stating it would come into force on Wednesday.

"A technical error occurred in the documents regarding the effective date," the Ministry said, adding that a correction had been initiated.

According to the law that has now come into effect, tobacco manufacturers must pay significantly more taxes than before. However, they cannot do so because the necessary tax stamps are not available. 

While a pack of 20 cigarettes in Germany currently costs around €8 ($9) on average, it will be nearly €12 by 2030, according to a forecast by the Ministry. Name-brand cigarettes could cost up to €14.

Each year, around 130,000 people in Germany die from tobacco-related illnesses. Medical professionals and some politicians are hoping that the high financial cost of smoking will have a deterrent effect.

Almost one in five people, or 19%, smoke in Germany, according to a 2025 census, with 14% of people aged 15 or over saying they smoked regularly, and 5% smoking occasionally.

The tax hike is expected to funnel around €12 billion in extra revenue into the treasury's coffers within four years.

The tobacco industry and the German Customs Union warn that, given the price increase, smokers could migrate to illegal channels and stock up on contraband cigarettes.