I know allied soldiers smoked (and that cigarettes were part of army rations) but what about Nazi soldiers? If they smoked, where did they get the cigarettes, and were they punished if caught red handed?
German soldiers were allowed to smoke and they were even issued cigarette rations, but far fewer than the Allied troops, and it was widely publicised that Hitler opposed tobacco. Posters, flyers, brochures and other propaganda material stressed that a true German soldier would try to refrain from smoking in order to keep his body healthy for the service to the Fatherland.
Various measures were taken that affected soldiers and SS personnel even before the war. In 1938 the Luftwaffe banned smoking in all its buildings. By 1940 SS members were prohibited from smoking while on duty, and ordinary soldiers were not allowed to smoke in the streets, during marches and during short breaks while on duty. Soldiers were issued six cigarettes a day (Allied troops about twenty) and non-smokers were issued tempting extra rations such as chocolate and other choice edibles. The troops were allowed to buy a maximum of 50 extra cigarettes a month but this was often not possible due to shortages caused by the decreased tobacco production ordered by Hitler. On top of that, in 1941 taxes on tobacco products were increased to almost 100% of the retail price. Female army employees were not issued tobacco rations, because "the German woman does not smoke" as the propaganda proclaimed.
Source: Robert Proctor, The Nazi War on Cancer.