Tabaksteuer-Vorhaben: Zigarren und Zigarillos könnten viel teurer werden

From January, cigar and cigarillo buyers might face significantly higher prices, according to a proposal by a coalition group in the German Bundestag. Bodo Mehrlein, CEO of the German Cigar Association, warned that tobacco taxes could explode, causing prices to rise by 50-60 percent. This could lead to substantial losses for the industry, as consumers may cut back on purchases due to the increased cost.

The industry is already struggling with weak demand, as the German cigar industry is projected to see a 6-7 percent decline in revenue this year compared to the previous year. High fuel prices and other rising living costs have made consumers more price-sensitive. "People start to economize somewhere, and that includes buying less cigarillos or high-quality cigars," Mehrlein explained.

Germany has seven companies producing cigars, with four located in Bünde and one in Minden-Lübbecke, along with 15 importers selling foreign goods. The industry employs around 1,640 people. Most cigar and cigarillo tobacco is sourced from Latin America and Indonesia. German cigar and cigarillo sales amount to about two billion units per year.

The products fall under the same tax category, so they are not distinguished by the government. Mehrlein expressed concern that if the coalition fails to soften its proposal, the industry would suffer significant job losses. "We don't just represent luxury high-end cigars over 100 euros; we also provide quality middle-class products," he said, emphasizing that customers range from the wealthy to regular consumers.

The association also worries about the 500 specialty stores selling cigars and cigarillos in Germany. "At some point, the price point will be reached where demand drops sharply, and our industry will be dragged down."