German coalition plans to increase tobacco tax to close budget deficit
Key Points
- The increase in the allocation for health insurance funds in Germany led to a new deficit in the budget.
- Coalition partners CDU/CSU and SPD plan to increase tobacco tax again to close the deficit.
- According to the draft, a pack of cigarettes is expected to rise to approximately 12 euros by 2030.
By the Numbers
A new deficit has emerged in the federal budget in Germany because more public funds had to be transferred to health insurance funds than initially planned. The Christian Union (CDU/CSU) and Social Democratic Party (SPD) coalition is proposing an additional increase in tobacco tax to close this budget deficit.
According to the draft obtained by RND, the tax burden per pack of cigarettes will be gradually increased. Within the framework of the targeted plan, a pack of cigarettes is expected to reach approximately 12 euros by 2030. Thus, it is aimed for the resulting additional income to become an important tool in closing the budget deficit.
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Frequently Asked Questions
- Why is tobacco tax being increased again in Germany?
- Because more financial resources had to be transferred to health insurance funds than initially planned, and a new deficit emerged in the budget.
- How much will a pack of cigarettes cost by 2030?
- If the coalition's draft is approved, a pack of cigarettes is expected to rise to approximately 12 euros by 2030.
- Which parties agreed to close the budget deficit?
- The Christian Union (CDU/CSU) and Social Democratic Party (SPD) coalition plans to close the deficit with a tobacco tax increase.
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