New Tax on E-Cigarettes

In the Budget on 6th March 2024, Chancellor Jeremy Hunt announced the UK government will introduce a new Vaping Products Duty starting October 2026. Currently vapes have 20% VAT. This new duty aims to discourage young people and non-smokers from vaping by raising costs.

What the Vaping Products Duty Means for You

Right now nothing changes. If the consultation proceeds without amendments, prices for nicotine-free and nicotine-containing e-liquids used in electronic cigarettes will increase from 1st October 2026. The consultation also includes higher Tobacco Duty to ensure smoking stays more expensive than vaping. This maintains a financial reason to switch away from smoking. Jeremy Hunt said e-cigarettes help people quit smoking, which is why there will be a “one-off increase in tobacco duty”. He wants to “maintain a financial incentive to choose vaping over smoking”.

How the Vaping Products Duty Will Tax Vapes from October 2026

The government sets new Vaping Products Duty levels for e-liquids starting 1st October 2026. This vape tax will have three brackets:

• Nicotine Free E-Liquids (0mg): Taxed at £1 per 10ml (on top of product cost). About 2.4% of duty on equivalent cigarettes.

• 0.1mg-10.9mg E-Liquids: Taxed at £2 per 10ml (on top of product cost). Roughly 4.7% of duty on equivalent cigarettes.

• 11mg or more: Taxed at £3 per 10ml (on top of product cost). Roughly 7.1% of duty on equivalent cigarettes.

How Tobacco Will Be Taxed from October 2026

A one-off tobacco duty increase will add £2 per 100 cigarettes or 50grams of tobacco.

Reasons for the Vaping Products Duty

The government listened to public health experts who say vaping isn’t risk-free and could harm young non-smokers. By raising vape costs and creating tax brackets, the Vaping Products Duty tackles “pocket money” pricing attracting youth. 2023 research found higher vape prices reduce consumption: 62% of current vapers said they would vape less if prices doubled, while 33% said their use would stay the same.

Objectives of the Vaping Products Duty

The Vaping Products Duty aims to raise £500m by 2028-29 and make vapes less affordable to reduce uptake by non-smokers and young people. It encourages vapers to use lower nicotine or nicotine-free vapes and pushes manufacturers to lower nicotine content. Revenue will fund services like the NHS and smoking initiatives for a smokefree generation. The design ensures smoking doesn’t become more appealing.

Will Disposable Vapes Be Banned?

Alongside the Vaping Products Duty, the Chancellor announced plans to ban disposable vapes “as soon as possible”. This ban aims to discourage young people and non-smokers due to their appeal to children and environmental harm from waste. Adults using disposables will be encouraged to switch to refillable vapes.

Other Countries with Vape Taxes

Other countries taxing vape products include Italy, Slovenia, Sweden, Denmark, Norway, Canada, and the US states of Georgia and Virginia.

Other Countries Banning Disposable Vapes

Countries like Australia, Germany, France, and Ireland restrict disposable vape sales to discourage youth vaping. Canada bans visible displays and vape advertising outside vape shops. Denmark and Finland use plain packaging and ban all flavoured e-liquids.

So here,if you trust me, I will offer you some choices of e-cigarettes. You can pick them with confidence. They will undoubtedly meet your expectations.