Germany to Raise Tobacco Tax, Ease Planned Energy-Subsidy Cuts
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German Chancellor Angela Merkel’s government plans to raise tobacco taxes over the next five years, generating as much as 1 billion euros ($1.4 billion) in fresh revenue for the federal budget by 2015.
The tax on cigarettes, rolling and pipe tobacco would be levied from 2011 and make up for falling tobacco tax revenue as Germans smoke less, opt for cheaper brands or turn to smuggled products, the Finance Ministry said today in an e-mailed statement.