German vapers face higher retail prices as Bundestag coalition factions push to raise taxes on e-cigarette liquids beyond original government proposals. While the Federal Ministry of Finance recommended a one-cent increase to 33 cents per milliliter starting in January 2027, CDU/CSU and SPD lawmakers want a three-cent surcharge to reach 35 cents per milliliter.
Price Increases and Black Market Concerns
Because value-added tax is calculated on top of excise duties, the proposed tax increase would raise the price of a standard 10-milliliter liquid bottle costing 12 euros by about 36 cents. Industry group Bündnis für Tabakfreien Genuss (BfTG) warned that this three percent price jump will accelerate illegal sales.
BfTG Chairman Dustin Dahlmann noted that previous tax increases from earlier this year pushed the illicit market share from roughly 40 to 50 percent. “This trend is likely to continue if the tax screw is tightened again,” Dahlmann stated.
Dahlmann warned that the federal government risks repeating past fiscal mistakes. In 2022, the Finance Ministry projected 520 million euros in e-cigarette tax revenue for 2025, but actual collections reached only 403 million euros due to black market displacement.
Health Debates and Youth Vaping
According to the DEBRA study by Heinrich Heine University Düsseldorf, approximately three percent of people in Germany aged 14 and older vape. While industry advocates point out that vapor contains fewer harmful substances than combustible cigarettes, medical professionals and cancer researchers caution that long-term health risks and youth nicotine addiction require continued regulatory vigilance.
