BERLIN

German politicians from the ruling coalition parties on Friday called for higher tobacco taxes to ease the financial strain on the country's statutory health insurance system, which faces billions in losses.

"Tobacco consumption costs Germany around 131,000 lives every year and causes over €30 billion ($36 billion) in direct health costs as well as almost €70 billion ($83 billion) in economic consequences," conservative lawmaker Hendrik Streeck told the Bild newspaper.

He emphasized that higher tobacco taxes are one of the most effective tools for protecting public health.

Hans Theiss, another conservative lawmaker from Chancellor Friedrich Merz's CDU/CSU alliance, said higher tobacco taxes could finance a reduction in value-added tax on medicines from 19% to 7%. "Through the VAT reduction, the insurance funds would have up to €7 billion ($8 billion) more available annually," Theiss said.

Karl Lauterbach, a senior lawmaker from Chancellor Merz's coalition partner, the Social Democrats (SPD), also expressed support for the proposal and called for higher taxes on alcohol.

"A tax increase would reduce consumption," the politician and former health minister told the newspaper. He added that the additional revenue could flow into the health system to relieve statutory health insurance funds.

The lawmakers' proposal would raise the price of a 20-pack of cigarettes from an average of €9 ($11) to around €11 ($13). Currently, tobacco tax on a pack of 20 cigarettes amounts to approximately €3.60 ($4.30).