The EU Commission will impose higher taxes on tobacco products. The industry warns of stratospheric prices, and calls the measure a "stimulus package for the black market."
The EU Commission intends to significantly increase taxes on cigarettes. But the German tobacco industry warns of very high prices.
"This plan would result in the price of a pack of branded cigarettes in Germany increasing from the current price of around 8.50 euros to more than 12 euros," said Jan Mücke of the Federal Association of the Tobacco and New Products Industry (BVTE).
A 30-gram bag of fine-cut tobacco for rolling cigarettes would cost more than 18 euros in the future, up from 10 euros.
The former liberal FDP politician is referring to a proposal by the Brussels authority to increase the minimum tax rate on cigarettes to 215 euros per 1.000 cigarettes. Currently, the rate is 90 euros.
For fine-cut cigarettes, the rate will increase from 60 euros to 215 euros per kilogram.
Tobacco Industry Association: Black market growing
The EU does not specify prices, but tobacco companies are allowed to raise prices if they have to pay higher taxes.
The Commission's proposal also includes a purchasing power premium, which would further increase cigarette sales in relatively wealthy countries like Germany.
"This is completely disproportionate," says Mücke, head of the industry association, referring to the proposed increase in general.
"Such a price shock would encourage illegal trade and this would be an economic stimulus package for the black market."
Criticism also from the European Parliament
However, whether the proposal will be approved in this form is uncertain, as both the member states and the European Parliament have their say.
Critical voices are increasing.
"Anyone who tightens the tax screw too much risks shifting more and more businesses into the informal economy," warns CSU MEP Markus Ferber.
"The Commission must act carefully here - otherwise it will harm honest companies and help smugglers."
According to industry representative Jan Mücke, criminal networks are increasing their efforts to sell illegal, untaxed cigarettes in Germany, as their business is becoming more profitable due to high cigarette prices in stores.
"Many smokers who previously bought cigarettes legally are now switching to illegal purchases." /DW/
