Smoking Is Getting Pricier: Cigarette Prices Rising Again in Austria Smoking is getting pricier: cigarette prices rising again in Austria Starting in April 2024, smokers in Austria face yet another price hike. Expect your favourite pack to go up by roughly 20 cents. This is due to the annual increase in the tobacco excise tax. ... Topics: News, Economy.

Smoking Is Getting Pricier: Cigarette Prices Rising Again in Austria 🚬

Smoking is getting pricier: cigarette prices are rising again in Austria 🚬

Starting in April 2024, smokers in Austria face yet another price hike on cigarettes. 💸 Expect your favourite pack to go up by roughly 20 cents. This is due to the annual increase in the tobacco excise tax.

But how hard will this hit your wallet? And how does the government use these additional revenues? Let’s break it down!

Why Are Cigarette Prices Going Up? 🤔

The main reason is the tobacco excise tax. 📈 The Austrian government raises it regularly to boost state revenues and, potentially, encourage people to quit smoking. Right now, around 77% of the cost of every pack of cigarettes goes to taxes. Impressive, isn’t it?

How Will This Affect Smokers? 🚬💶

If you smoke a pack a day, your annual cigarette expenses will rise by roughly 73 euros. In total, you’ll spend about 2,373 euros per year on cigarettes alone.

Where Does the Tobacco Excise Revenue Go? 💰

The tobacco excise is an important source of income for Austria. In 2018 it brought in 1.92 billion euros to the state coffers, and in 2023 this figure likely exceeded 2 billion. In terms of revenue, the tobacco excise is second only to the fuel tax. These funds go towards financing various government programmes and social projects.

Excise Taxes in Austria and Germany: What’s the Difference? 🇩🇪🇦🇹

It’s interesting to compare the tobacco excise situation in Austria and Germany. Germany is also planning excise increases. For example, an article titled “Tobacco Tax: Smoking Will Become More Expensive” reports that the tax on a pack of cigarettes in Germany will rise several times between 2022 and 2026.

Alternatives: E-Cigarettes and Other Nicotine Products 💨

In recent years, e-cigarettes and other nicotine products have been growing in popularity. As a result, Austria is also considering expanding the excise tax to cover such products.

Germany Is Raising Taxes Too: What Awaits Smokers? 🇩🇪

Germany is also expected to increase its tobacco excise. The last time this happened was in 2015, and now, from 1 January 2025, German smokers are facing new changes. The tax will rise not only on cigarettes but also on e-cigarette liquids. As a result, smoking will become an even more expensive habit.

Conclusion

The rise in cigarette prices in Austria is part of a broader trend of increasing tobacco excises across Europe. 🌍 On the one hand, it’s a noticeable hit to smokers’ wallets. On the other, it means additional revenue for the budget and a potential incentive to quit smoking.

What do you think about this? Will the price increase affect your tobacco consumption? 🤔

We hope this article helped you understand the situation with rising cigarette prices in Austria. If you found it interesting, share it with your friends! 📢

Photo: How to Austria