The German parliament has adopted a gradual increase in tobacco and e-liquid taxes, under which the excise tax on e-liquids will reach 0.44 euros per milliliter by 2030. The decision affects both nicotine-containing and nicotine-free liquids, as well as heated tobacco products.
The German Bundestag has voted in favor of a four-year tax increase plan for tobacco products and e-liquids. According to the legislation, the excise tax on e-liquids will rise from the current 0.32 euros per milliliter to 0.38 euros in January 2027 and will then continue to increase gradually until it reaches 0.44 euros in 2030. Compared to current rates, this represents a 37.5 percent increase, meaning a single 10-milliliter refill will carry an excise tax burden of 4.40 euros by 2030, excluding VAT and retail margins. The volumetric tax system applies to nicotine-free liquids under the same conditions.
The law also increases taxes on traditional cigarettes and heated tobacco products. The tax rate for heated tobacco products will continue to be pegged at 80 percent of the excise tax on cigarettes, and the average price per pack of cigarettes is expected to approach 12 euros by 2030. According to the finance committee’s calculations, the package of measures could generate 11.824 billion euros in additional revenue for the federal budget between 2027 and 2030.
The decision was supported by the governing coalition, while the majority of opposition parties voted against it. During parliamentary debates, industry players warned of the risk of a growing black market and smuggling, while health experts emphasized the benefits of curbing smoking through higher prices.
In Brief
- The excise tax on e-liquids will rise to 0.44 euros per milliliter in Germany by 2030.
- Volume-based taxation applies to nicotine-free refills as well, taxing products based on their size.
- The tax on heated tobacco products follows 80 percent of the excise tax on traditional cigarettes.
- The finance committee expects 11.824 billion euros in additional revenue for the 2027–2030 period.
Source: Vaping360 (vaping360.com)
This summary was prepared by artificial intelligence based on the original article.