Zigaretten: Ministerium macht Fehler im Tabaksteuergesetz

The German Federal Finance Ministry has made an error in the Tobacco Tax Law, which will significantly increase cigarette prices in the coming years. According to the Federal Gazette, the law appears to take effect this Wednesday. This surprised the tobacco industry, which had expected the law to take effect at the beginning of the year.

The German Association of Smoking Tabak Industry (VdR) noted that the higher tax rates would already be in effect, even though they were supposed to start in 2030. Maximilian van Ackeren from the VdR said, "We would have to stop production immediately, as we would no longer be allowed to supply tobacco to the trade." Previously, the tobacco tax law was also published during the year, in August 2021.

However, it explicitly stated that the law would take effect on January 1, 2022. In the new law, however, it states that the law "takes effect the day after publication," or October 21. The Federal Finance Ministry acknowledged the mistake, stating that the higher tax rates are meant to take effect on January 1, 2027. The ministry has initiated a correction and informed the General Customs Directorate, which administers the tax.

According to the ministry, production can continue despite the error in the law. Existing cigarettes in stores can be sold regardless of the law change. Tabak lobbyists were somewhat relieved that the feared production halt would not happen. Van Ackeren expressed surprise at the technical error, calling it "dilettantism" that makes him feel speechless.

Jan Mücke from the Federal Association of Tobacco Industry and Novel Products (BVTE) also expressed sharp criticism, stating that the law was poorly drafted. The Bundestag recently approved the reform of the tobacco tax, with the tax to rise gradually until 2030. This could increase the price of a pack of 20 cigarettes by around four euros to 11.78 euros.

In public, the focus was always on the period 2027-2030 - the idea that the tax increase would take effect earlier never arose. The magnitude of the surprise for the industry representatives was the publication of the law text, which showed a different intent.