Germany’s governing coalition is planning increases to tobacco taxes, potentially raising the price of cigarettes by one euro as early as 2027. The reforms could see the price of a pack of cigarettes reach twelve euros by 2030. Experts are cautioning that higher taxes could fuel the growth of a black market for cigarettes within Germany. The proposed tax increases are part of a broader effort to discourage smoking and improve public health. Concerns remain about the effectiveness of the measure and the potential for unintended consequences, such as increased illicit trade. The government believes the increased revenue from taxes will offset any potential losses from decreased legal sales.

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