Breakdown should be fixed: Higher tobacco tax accidentally applies immediately

Law comes into force by mistake Ministry makes a mistake with the tobacco tax law As of: October 21, 2026 • 1:58 p.m

Yesterday the law to increase the tobacco tax was published. The tax rates are actually supposed to rise from 2027. But due to a glitch at the Ministry of Finance, they are now valid - at least on paper.

Starting next year, the tobacco tax is set to increase gradually. The text of the relevant law was published in the Federal Law Gazette on Tuesday - and one sentence is now causing a stir. Because it says that the law comes into force much earlier, namely from today.

“This law comes into force on the day after its promulgation” - this is what it says in the published text of the law. The Federal Ministry of Finance confirmed the breakdown, which was first reported by the Bild newspaper.

When asked, a spokesman for the Ministry of Finance explained that there had been a technical error in the effective date. The error should be corrected. The General Customs Directorate, which is responsible for collecting tobacco tax, has already been informed.

Millions of people smoke in Germany, which brings the federal government billions in revenue from tobacco taxes. more

According to the law that has come into force, tobacco manufacturers in Germany would now actually have to pay far more taxes than before. But they can't do that because the necessary control symbols aren't available.

The ministry assured that the new tax rates should - as planned - only take effect from the beginning of 2027. Tobacco industry producers are allowed to continue supplying cigarettes, even if they are now - purely formally - violating the existing law.

Cigarettes and other tobacco products should be taxed significantly more than before. What exactly is planned? more

As the ministry further explained, the error was already contained in the finance department's draft law. It was then “not noticed” in the entire further consultation process in the government and parliament and was therefore not corrected. The government is still discussing how the breakdown can be resolved.

A spokesman for the finance department referred to the intention of the legislature to make the tax increase effective from 2027, which was also clearly evident in the justification for the law. Therefore, a clarification “through the interpretation of the law” may be sufficient, he said. This would therefore enable a quick correction without the Bundestag having to deal with the law again.

The black-red coalition wants to increase the tobacco tax - and justifies this with health protection. more

The Association of the German Smoking Tobacco Industry (VdR) was relieved that this prevented restrictions in production. However, the association does not skimp on criticism of the breakdown. "It's astonishing that such an outrageous mistake could happen to a federal ministry. A ministry writes a law, and the next day it says: 'Oops, that was meant completely differently!' This is amateurism that leaves me stunned," said Maximilian van Ackeren from the VdR.

Jan Mücke from the Federal Association of the Tobacco Industry and Novel Products (BVTE) also urged that legal certainty must be established quickly. “As a tobacco industry, we are moving into a gray area for weeks that the authorities should tolerate,” he warned.

The Bundestag recently approved the reform of the tobacco tax, and the tax is to increase gradually by 2030. This could make a pack of 20 cigarettes more expensive by around four euros to 11.78 euros. Fine-cut tobacco, also known colloquially as rolling tobacco, could therefore rise from the current price of 6.75 euros for 30 grams to over 10 euros. The tax is expected to bring in around 1.5 billion euros in additional revenue next year and discourage smoking. In 2025, the federal government collected 17.6 billion euros from tobacco taxes.

With information from Frank Aischmann, ARD capital studio.

This topic in the program: tagesschau.de | Higher tobacco tax accidentally applies from tomorrow | Oct 20, 2026 | 7:37 p.m