Skail cigarettes soon for 12 euros? EU urges higher prices

In view of the EU Commission’s proposal to tax cigarettes significantly more, Germany’s tobacco industry warns of higher prices. “The project would lead to the price of a pack of branded cigarettes in Germany from currently around 8.50 euros to more than 12 euros,” said Jan Mücke from the Federal Association of Tobacco Economics and New Departments (BVTE) of the dpa news agency in Berlin. The 30-gram bag with fine-cut tobacco for turning yourself would cost more than 18 euros instead of 10 euros.

The former FDP federal politician referred to a project by the Brussels authority, according to which the minimum tax rate for cigarettes is to be increased to 215 euros per 1000 cigarettes. So far, the value is 90 euros. With fine cut, it should go up per kilo from 60 to 215 euros. The planned EU regulation does not make any specifications at the prices. However, the tobacco companies are likely to raise prices if they have to pay more taxes.

In addition, there is also a purchase force surcharge in the commission project, which would also make sales in relatively rich states such as Germany more expensive. “This is completely disproportionate,” says the managing director of the industry association with a view to the increasing project as a whole. “Such a price shock would fuel illegal trade and that would be an economic stimulus program for the black market.”

Already now every fifth cigarette that is smoked in Germany is not taxed in Germany – either because it comes from the black market or is legally brought from the cheaper countries. “In the future, this proportion could increase significantly – in Great Britain it is already more than 40 percent.”

It is questionable whether the proposal in the current form will come through, after all, the Member States and the EU Parliament have a say. Politicians become critical voices. “Anyone who attracts the tax screw too strongly risks that more and more business is being shifted to the shadow economy,” warns CSU members of Markus Ferber. “The commission has to act with a sense of proportion – otherwise it hurts honest companies and helps the smugglers.”

According to the industry representative Mücke, criminals would increase their efforts to sell non -controlled illegal cigarettes in Germany, after all, their business would be more lucrative due to the higher cigarette prices. “Many smokers who have previously bought cigarettes quite legally would switch to illegal flows of goods.” The impending black market boom could also lead to the increase in smoking quota among young people. “Dealer does not make a age review.”

The SPD European MP Tiemo Volken, on the other hand, evaluated the project positively: “With the proposed increase in tobacco tax, the Commission takes a correct step towards health and cancer.” The Green member of the Bundestag also signaled Linda Heitmann. Adjusting prices in addictive agents is a necessary prevention measure so that people buy fewer addictive substances. “Unfortunately, we see that smoking in Germany is still comparatively cheap in Europe and worldwide. Too cheap!”

Health experts warn of the carcinogenic tobacco consumption, you see the EU Commission’s project positively. “Clear tobacco tax increases are the most effective measure to motivate smoking people to non -smoking and to keep non -smoking people – especially young people – before getting started,” says Katrin Schaller from the German Cancer Research Center (DKFZ). “A price increase of ten percent reduces tobacco consumption by around four percent in countries with high incomes.”

According to the industry, the federal government took 15.6 billion euros in tobacco taxes last year. Brussels would like to get something from such national income in the future, 15 percent. However, this has not yet been decided and encounters resistance in the capitals of the Member States.

The tobacco tax on cigars and cigarillos should also increase considerably. So far, the minimum tax in this area has been low, in the future it will go from 12 to 143 euros per 1000 pieces. There is also a purchasing power. The cigarillos produced in Germany are currently roughly cost between eight and 14 euros per pack.

If the commission plans are implemented, according to the Federal Association of the Cigar industry, the price would be more expensive by around six euros. Association Managing Director Bodo Mehrlein sees “a massive threat to medium -sized manufacturers and importers of cigars and cigarillos”, in Germany 1,600 jobs would be at risk.