In Germany, the price of cigarettes could increase by up to 2 euros, and VAT on medicines would be reduced

By: Trademagazin Date: 2026. 01. 30. 09:14

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The German government has proposed raising cigarette taxes by up to €2 per pack, with the additional revenue being used to reduce VAT on medicines from 19% to 7%. The proposal aims to reduce smoking and reduce the burden on health insurers.

The plan was also supported in the press by Hendrik Streeck, Germany’s Commissioner for Drugs, on the grounds that smoking causes a significant health and economic burden. According to the article, the tobacco tax increase could generate up to €7 billion in additional revenue annually.

In connection with the German drug policy debates, there are also initiatives to tighten cannabis regulations: Bavaria’s health authorities, for example, have urged a reversal of legalization.