Germany's Bundesrat Backs Tobacco Tax Reform as Cigarette Prices Set to Rise Further
Germany's Bundesrat has voted for what the federal government calls a "tobacco tax reform," following passage in the Bundestag. The measure is in practice a series of tobacco tax hikes, and cigarette prices in Germany will rise further from already high levels.
A pack of 20 cigarettes cost about three euros in Germany in 2002, rising to five euros by 2012, six euros for premium brands in 2016, seven euros in 2020, eight euros in 2023 and nine euros in 2025. Smokers currently pay about 9.40 euros for a pack of branded cigarettes, and prices are expected to move well above that level under the new increases.
The government says the main goal is to decrease the number of smokers and deter young people from starting. Fiscal revenue will also rise, as the tax is passed on to consumers, who already pay VAT on every pack. Millions of people in Germany smoke despite the known health risks. (GSM, based on The Berlin Spectator, October 17)
Source: GSM · USA (original Chinese edition)
Photo: 柏林勃兰登堡门。 Photo by Dietmar Rabich, Wikimedia Commons, CC BY-SA 4.0.
