Germany keeps pre-2027 tobacco-duty rates pending correction

Promulgation created an immediate timing conflict

The Act amending the Tobacco Duty Act was published as Federal Law Gazette 2026 I No 309 on 20 October and entered into force on 21 October under Article 3. The replacement section 2 sets fallback rates before listing annual transitional rates beginning in 2027. At the 23 October government press conference, the ministry accepted that the amended Act was already in force but explained that the new wording would be interpreted to preserve the rates intended for the period ending 31 December 2026.^[1][2][3]

The ministry relies on interpretation while correction proceeds

The spokesperson initially described the response as an instruction to customs to continue levying the previous rates, then clarified that subordinate authorities had been informed how to interpret section 2 for each product category. The ministry said the interpretation gives effect to the legislature’s clearly recognisable intention and that it had initiated the formal correction procedure under the federal government’s joint rules. This is an administrative position on enacted wording, not a completed statutory correction.^[1]

Four annual steps start in 2027

The current section 2 text schedules a cigarette rate of 14.34 cents per cigarette plus 21.05% of the retail selling price for 2027, increasing through annual steps to 18.57 cents plus 21.05% for 2030. Fine-cut tobacco moves from €75.80 per kilogram plus 17.97% in 2027 to €121.71 plus 17.97% in 2030. The minimum-tax formulas rise over the same periods.^[3]

Substitutes for tobacco products, including relevant e-liquids, move from €0.38 per millilitre in 2027 to €0.44 from 2030. New rates for cigars, cigarillos and pipe tobacco begin on 1 March 2027 rather than 1 January. Heated tobacco continues to combine the pipe-tobacco charge with an additional amount based on 80% of the cigarette charge, while water-pipe tobacco retains its €23-per-kilogram additional charge.^[3]

Businesses should separate administration from legal text

Manufacturers, importers and groups distributing tobacco or vaping products in Germany should retain the pre-2027 rates in current-period systems in line with the ministry’s interpretation, while configuring the statutory annual steps and monitoring the promised correction. The Act also gives a temporary five-week tax-stamp ordering period through 31 December 2026 for cigarettes, fine-cut tobacco, heated tobacco and substitutes where tariff changes and new stamps are introduced. Records should distinguish the enacted text, the ministry’s present administrative treatment and any later formal correction.^[1][2]