German Black Market Association 'Thanks' Government for Tax Hikes
A German tobacco industry association released a satirical statement from a fictional black market group, 'thanking' the government for planned tax increases that they claim will boost illegal trade.
Berlin – A fictional German association for the black market in tobacco products (BDS) has "thanked" the German federal government for planned significant tobacco tax increases set to take effect in July 2026. The group claims these measures will create "ideal growth conditions" for illegal trade, smuggling, and cross-border purchases.
The association's imaginary chairman, Karl Kippe, stated that the tax hikes represent a "comprehensive support program" for the illicit trade. "Every further price increase improves our competitive position against legal trade. We explicitly want to thank you for this," Kippe commented. The group claims it is preparing for growth by securing new storage capacities and recruiting personnel for cross-border logistics.
The BDS also expressed satisfaction with the government's expectations of collecting billions of euros in additional tobacco tax revenue. According to the association, as the legal market shrinks and consumers shift to untaxed goods, the illegal trade benefits while its competitors mislead themselves. This offers "prime expansion opportunities" for unregulated actors.
The association also referenced experiences from other European countries, such as France and the Netherlands. They argue these nations have "impressively demonstrated" how high tobacco taxes can foster the illegal trade. "We are happy that Germany is now following this successful path," the BDS stated.
The official German Association for the Tobacco Industry and Novel Products (BVTE) issued this statement as a satirical commentary. The release, according to the association, intentionally exaggerates the consequences that drastic tax increases may have on the illegal trade.