German Tobacco Tax Revenues Decline Over 10 Percent
Germany's tobacco tax revenues fell by 10.8 percent between January and August 2026 compared to the previous year, totaling 9.79 billion euros. The decline reflects decreased sales of taxed cigarettes and fine-cut tobacco.
Berlin – Germany's tobacco tax revenues dropped by 10.8 percent in the period from January to August 2026 compared to the same period last year, amounting to 9.79 billion euros. The figures, released by the Federal Ministry of Finance, indicate a continuation of the downward trend observed since the beginning of the year.
The decline is particularly pronounced for cigarettes, the primary source of tobacco tax revenue. According to the Federal Statistical Office, taxed cigarette sales decreased by 12.6 percent to 40.6 billion pieces during the first eight months of the year. Consequently, net tax revenues from cigarettes also fell by 11.3 percent to 7.42 billion euros.
For fine-cut tobacco, the taxed volume decreased by 5.4 percent, with tax revenues declining by 4.6 percent to 1.50 billion euros. Despite the falling sales volumes, the German federal government plans further tobacco tax increases through 2030, aiming to significantly boost state revenues.
Jan Mücke, CEO of the German Association of the Tobacco Industry and Novel Products (BVTE), warned that continued tax hikes could lead to increased illegal trade and cross-border purchases. He urged policymakers to seriously consider market signals and declining tax revenues before implementing further increases.