Reemtsma, Germany’s second-largest tobacco manufacturer by overall market share, criticized planned tobacco tax increases from 2027 ahead of an expected Bundestag vote, saying the measures depart from the governing coalition’s commitment to predictable, moderate tax increases. The company said warnings from businesses, retailers, trade unions, researchers, and lawmakers about the potential effects of larger increases were largely disregarded during the legislative process.
Reemtsma said higher taxes could accelerate cross-border purchases and illicit tobacco sales without reducing consumption at the same rate as legal-market sales. The company warned that declining legal sales could put pressure on manufacturers, retailers, employment, and domestic economic activity. It also questioned whether the government would collect the projected additional €11.8 billion in tax revenue through 2030 if consumers shifted to untaxed channels.
Christian Cordes, Reemtsma’s director of corporate and legal affairs, compared the proposal with tax increases in the early 2000s, which he said contributed to a decline in the legal market and lower-than-expected revenue. Reemtsma said it supports a gradual, predictable tax-increase model and called for clear criteria to assess changes in legal sales, consumption, and tax receipts, along with measures to address potential market imbalances. The company’s position is outlined in its statement on tobacco taxation.
