What is the Federal Ministry of Finance planning?
Federal Minister of Finance Klingbeil has submitted a draft law to amend the Tobacco Tax Act – and the Federal Association of Hookah Tobacco is reacting with sharp criticism. The draft proposes to gradually increase the tax burden on hookah tobacco from currently around 56 euros per kilogram to 188.46 euros per kilogram, starting on January 1, 2027, and continuing until 2030.
This means: In the first step alone, on January 1, 2027, the tobacco tax on hookah tobacco will increase by almost 89 percent. By 2030, it is expected to more than triple.
What this means for consumers
A 200-gram can of shisha tobacco currently costs an average of around 27.90 euros in stores. According to the draft law from the Federal Ministry of Finance, the same can could cost between 50 and 60 euros by 2030 – including VAT and trade margin.
To put that into perspective: In 2021, a 200g can still cost 17.90 euros. The planned development until 2030 would represent a price increase of over 277 percent in less than ten years.
Check out our shisha tobacco selection now – before the next price hike.
Why the federal association speaks of a "death blow"
The Federal Association of Hookah Tobacco draws attention to a correlation that the Federal Ministry of Finance seems to ignore in its own calculations: Hookah tobacco consists of only 10 to 15 percent real tobacco. The rest is molasses, glycerine and flavor – the EU Commission itself noted this in a report.
Based on the actual tobacco content, the effective tax burden after 2030 would be between 1,257 and 1,885 euros per kilogram of pure tobacco. This would make hookah tobacco the most highly taxed smoking tobacco product in Germany – even though it is mostly consumed occasionally. Even the EU Commission, in its most recent minimum taxation proposals, only wanted to set around 107 euros per kilogram.
Association Managing Director Folke Rega describes the plans as a "death blow to the cultural asset of shisha."
What the past shows – and why it matters
This is not a theory. The federal association refers to the years 2022 to 2024, when a 25-gram packaging limit drove up production costs and caused the selling price to rise to over 170 euros per kilogram. The result was clear: the legal, taxed sales volume plummeted by 90 percent. Tax revenue in this category fell to below 42 million euros.
What exploded instead: the black market. According to the federal association, illegally produced hookah tobacco accounted for around 80 percent of the total market during this period. Customs itself regularly describes the trade in illegal hookah tobacco as more lucrative than that of most drugs.
Consumers did not stop smoking shisha. They simply bought elsewhere – without tax, without quality control, and at the expense of all legal traders and manufacturers.
What the association demands
The Federal Association of Hookah Tobacco is convinced: With the planned tax rates, no functioning legal market can exist in Germany. The additional revenues of 31 to 66 million euros calculated by the Federal Ministry of Finance will not materialize, according to the association – instead, a complete tax failure in this category is imminent.
The association's demand is clear: The tax rate must be returned to the 2021 level to push back the black market and preserve legal trade.
Conclusion
If the draft law from the Federal Ministry of Finance is passed as proposed, a 200-gram can of shisha tobacco could rise to up to 60 euros by 2030. The federal association openly warns of the end of the legal market – drawing comparisons to a historical situation that has already demonstrated exactly that. The draft still needs to be passed, but the direction is clear.
If you want to stock up now: Our shisha tobacco selection shows what we currently have in stock. Classics like Al Fakher and 187 Strassenbande are among our best-selling varieties.
When do the new tax rates apply?
According to the draft law, the first step is planned for January 1, 2027. Further increases are to follow until 2030, until the tax burden has risen from today's 56 euros to 188.46 euros per kilogram.
How much more expensive will a can of shisha tobacco become?
A 200-gram can, which currently costs around 27.90 euros, could rise to 50 to 60 euros by 2030. In 2021, it still cost 15.90 euros – that would be a price increase of almost 280 percent in less than ten years.
What happens if prices rise so sharply?
The federal association warns of an explosion in the black market. When prices last climbed above 170 euros per kilogram between 2022 and 2024, legal sales volumes fell by 90 percent. The black market reached around 80 percent of the total market.
Has the law already been passed?
No. A draft from the Federal Ministry of Finance is available and still needs to be passed by parliament. The Federal Association of Hookah Tobacco has publicly opposed it and is calling for a correction.
