- A new £2.20 duty now applies to every 10ml of vaping liquid.
- Tobacco duty has also increased as the Government seeks to preserve the financial incentive for smokers to switch.
- New duty stamps will be used to help trace vaping products and tackle illegal trade.
A new UK vape tax has come into force today (1), with vaping products now subject to a £2.20 duty for every 10ml of liquid. The charge applies whether or not the liquid contains nicotine and must be paid by approved manufacturers, importers and warehouse operators.
The additional cost may eventually reach consumers, although businesses decide whether and how much of the duty is passed on. Retailers and wholesalers also have six months to sell existing stock before the new stamping requirements fully take effect.
The stamp is more than just a label
Alongside the new tax, HM Revenue and Customs (HMRC) has introduced a vaping duty stamp scheme designed to make products easier to trace through the supply chain.
New vaping products will need a valid duty stamp, with all vaping products sold in the UK required to carry one from April 1, 2027. The Government says the system will help enforcement agencies identify products on which the correct duty has not been paid and support legitimate retailers in tackling illegal trade.
The changes come as ministers seek to reduce the appeal and availability of vapes among children and non-smokers.
Financial Secretary to the Treasury and Paymaster General James Murray reportedly said, "Our new measures will help get illicit vapes off high streets across the country."
He added, "We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t."
The Government says the duty is intended to make vaping less affordable for young people while maintaining a financial incentive for existing smokers to move away from cigarettes.
Tobacco is getting more expensive too
The changes do not stop with vaping. Tobacco duty has also risen by £2.20 per 100 cigarettes or 50g of tobacco, alongside the standard tobacco duty escalator.
HMRC says the increase is designed to preserve the financial incentive for smokers to switch to vaping, which the Government considers less harmful than smoking.
The vaping industry, however, has raised concerns that making legal vaping products more expensive could work against that objective.
UK Vaping Industry Association director general John Dunne reportedly said, "There is absolutely no debate that we need to prevent young people from accessing vaping products, and the industry is not flatly opposed to a duty increase, but the incoming rate is nothing short of a public health time bomb."
The industry has argued that affordable vaping products can help adults quit or reduce smoking, while the Government says its new measures are aimed at preventing children and non-smokers from taking up vaping.
There are also new rules for travellers entering Great Britain. From today, individuals can bring up to 50ml of vape liquid for personal consumption without paying duty or tax. Any amount above that must be declared and the relevant duty paid.
The new measures therefore go beyond a tax on vaping liquid. They bring in a new cost for the industry, new tracking requirements for products and higher tobacco duties, as the Government attempts to balance its approach to youth vaping with its wider effort to reduce smoking.
