Between 2005 and 2008 the number of untaxed cigarettes smoked in Germany has risen from 16 to 20 per cent, according to the Hamburg Institute of International Economics (HWWI). Instead of reducing the number of cigarettes smoked, the tax has only increased the number of illegal cigarettes consumed.
The tax increase has also created an overall reduction in tax revenue earned on tobacco, and a continued increase in contraband cigarettes is expected. According to the DZV, the German cigarette association, this means a yearly loss of some EUR €4 billion (USD 5.6 billion). Germany has Europe’s fourth highest tobacco tax after Ireland, England and France.
Smoking rates in Germany have remained stable in spite of restrictions, 120.6 billion sticks in 2009 vs. 119.3 billion in 2008, with a major shift towards roll-your-own tobacco products. (pi)
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