Several representatives of the “Black-Red” coalition have voiced support for raising the tobacco tax. Beyond the medical implications, the focus remains on finance: the idea is to use the additional revenue to fund a reduction in Value Added Tax (VAT) on medications. This move would relieve statutory health insurance funds, which face a multi-billion euro deficit next year.
Two Euros More Per Pack
“By lowering the VAT, insurance funds would have up to seven billion euros more at their disposal annually,” explained CSU health representative Hans Theiss in an interview with Bild. He noted that this could be offset by a higher tax on cigarettes and similar products: “Specifically, a price increase of two euros per pack would be sufficient.”
The CSU representative emphasized that while he generally opposed tax increases, he viewed this measure as justified because “smoking caused billions in healthcare costs,” and the burden on other contributors would not increase.
An Effective Tool for Public Health
Hendrik Streeck (CDU), the Federal Government Commissioner for Addiction and Drug Issues, told Bild: “Tobacco consumption costs Germany approximately 131,000 lives annually and leads to direct healthcare costs of over 30 billion euros, as well as nearly 70 billion euros in indirect economic losses.”
According to Streeck, raising the tobacco tax is not “moralizing” but rather an effective tool for public health. He argued it has been proven to reduce consumption, prevent disease, and relieve “our solidarity-based healthcare system, and thus the contributors.” Streeck added: “If we purposefully invest a portion of the additional revenue into prevention and smoking cessation, it will be a win for everyone.”
DAK Insurance Also Supports Alcohol Tax Increase
Former Health Minister Karl Lauterbach (SPD) supported the proposal. “The consumption of tobacco and alcohol was price-dependent. With tax increases, consumption would decrease. Additional revenue could flow into the healthcare system to support statutory health insurance funds,” he emphasized in a conversation with Bild.
Earlier this week, the insurance fund DAK-Gesundheit had already proposed reducing the VAT on medicinal products and financing it through higher taxes on tobacco and alcohol. “To be able to keep statutory health insurance contributions stable in 2027, the VAT on medicines and treatments must be reduced to seven percent,” confirmed DAK head Andreas Storm.
Statutory Health Insurance Funds Under Pressure
Health Minister Nina Warken (CDU) expected a double-digit billion euro deficit in statutory health insurance funds by 2027 that must be covered. A commission she established is scheduled to present proposals to stabilize the situation by March. Further reform proposals are expected by the end of the year.
Source: BR24
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