Germany is planning another rise in vape taxes, as an industry association warns that illegal products already account for an estimated half of the market.
The government’s draft legislation, submitted to the Bundestag on 7 September, proposes annual increases in e-liquid duty from January 2027 to 2030.
But MPs from the governing CDU/CSU and SPD parties want a bigger initial increase, according to reporting by Lebensmittel Praxis, drawing on the German press agency dpa.
The vaping trade association Bündnis für Tabakfreien Genuss (BfTG) warns that further price rises could push more customers towards illegal sellers.
What would change?
The government’s bill would raise e-liquid duty from €0.32 to €0.33 per millilitre on 1 January 2027, followed by annual increases to €0.34 in 2028, €0.35 in 2029 and €0.36 from 2030.
For a 10ml bottle, that would mean excise duty of €3.30 next year, rising to €3.60 in 2030. These figures cover the duty alone, before VAT.
The reported coalition proposal would bring the rate to €0.35 per millilitre as early as January 2027. BfTG estimates this would add around €0.36, including VAT, to a typical 10ml bottle.
The higher figure is separate from the €0.33 rate set out in the government’s published bill. The final rate remains subject to the legislative process.
Industry warns of growing illegal trade
BfTG says the illicit market’s share has risen from an estimated 40 per cent to 50 per cent following January’s six-cent increase in duty to €0.32 per millilitre. Its chairman, Dustin Dahlmann, warned that the trend could continue if taxes rise sharply again. The 50 per cent figure is an industry estimate.
Government seeks more revenue
The proposals form part of a wider tobacco tax package covering cigarettes, rolling tobacco and heated tobacco, alongside vaping liquids.
The government says the changes will help address pressure on the federal budget while supporting public health goals, including reducing smoking among young people and adults.
Across the package, it expects additional revenue of €756 million in 2027, rising to around €3.59 billion in 2030. Those totals cover all the affected product categories.
For vaping liquids specifically, the bill projects additional excise revenue of €26 million in 2027 and €44 million in 2030.
It also assumes businesses will pass the extra tax on to consumers in full.
Further changes could follow. The bill says Germany may need to adjust its legislation and potentially its tax rates again once negotiations over the EU’s revised tobacco excise directive are complete.
