• July 24, 2024

Germany Revokes Shisha Packaging Rules

 Germany Revokes Shisha Packaging Rules

Image: ir1ska

Image: ir1ska

Germany’s finance ministry has revoked its rules for packaging shisha tobacco, which caused major backlash and some retailers to go bankrupt, according to DPA International.

The packaging regulation was introduced in 2022 to prevent tax evasion, which was a frequent issue in shisha bars. Shisha bars would buy large packages of shisha tobacco and divide them into small portions, which the government said was tax evasion because the bars were paying less in taxes than they should be.

The packaging regulation subsequently banned 200-gram packs and 1,000-gram packs and only allowed packs to be a maximum of 25 grams. The finance ministry expected an additional tax revenue of €155 million ($165 million) following the restrictions; however, tax income declined as the black market increased.  

According to DPA, the regulations will be lifted beginning July 1, allowing packs of all sizes to be legal again.