Starting Monday, January 19, smoking will become more expensive again for most consumers. The price of a pack of cigarettes will increase by 10 to 40 cents, according to Heute. Japan Tobacco International (JTI) will lead the increase, with competitor Philip Morris following on February 2. The reason cited is the tobacco tax hike taking effect in February. The Finance Ministry expects an additional €100 million in tobacco tax revenue this year, the Kronen Zeitung recently reported.
JTI, for example, is raising prices for the brands Camel, Benson & Hedges, Sobranie, Winston, Meine Sorte, and Smart Export by 30 to 40 cents. At Philip Morris, a pack of Marlboro will cost €7 in the future, an increase of 10 cents.
Significantly higher tax revenue in 2025
Last year, revenue from the tobacco tax increased by around €50 million compared to 2024, reaching €2.18 billion. Including value-added tax, total revenue amounted to approximately €2.9 billion. However, fewer cigarettes were sold. Sales volume fell by 4.3 percent to 10.7 billion cigarettes. In 2025, the weighted average price of a pack of cigarettes was €6.25, up from €5.96 in 2024. The tax share accounted for 76 percent of the price.
In total, 12.3 billion cigarettes were smoked in Austria, including cigarettes not taxed in Austria. The share of smuggled cigarettes is estimated at 13 percent, or about 1.6 billion cigarettes.
Tobacco monopoly to be expanded
This year, not only is the tobacco tax being increased, but the tobacco monopoly is also being expanded. The tax will also be applied to “tobacco-related products” such as nicotine pouches and e-liquids for e-cigarettes. Starting in April, these two products will fall under the tobacco monopoly. CBD shops will be granted a transition period until the end of 2028. After that, cannabis products with low THC content will fall under the tobacco monopoly and may only be sold in tobacco shops.
