The Chancellor plans to introduce the first tax on vapes from 2026 while acknowledging their benefits for smokers quitting
From 1 October 2026, a new duty on vaping will be introduced, but tobacco duty will rise with it so there is still a difference in price, as vaping is still seen as an option for smoker to kick the habit altogether.
However, vaping is still not considered healthy or beneficial.
The duty will be charged at £1 per 10ml for nicotine-free liquids and £2 per 10ml for liquids containing 0.1-10.9mg of nicotine. Anything with 11mg or above will be charged £3 per ml.
It is expected to raise in £120m in the first year of being introduced, increasing to £445m by 2028/29.
Alison Horner, head of indirect tax at MHA, said: ‘With vaping hitting the news as having adverse implications on the health of the nation it is no surprise that the Chancellor has taxed them as he would cigarettes.
The new excise duty comes into force in October 2026. At the same time, tobacco duty will again rise to ensure that there is still a disincentive to smoke cigarettes as opposed to vape.
‘This is a dramatic change from recent years when vapes were touted as the healthy option and it was even suggested they should be tax free. This new tax is similar to those being introduced on vapes in the EU.’
Following on from a consultation held in October 2023 titled ‘creating a smokefree generation and tackling youth vaping’.
This discussed the banning of single use vapes altogether, as they are seen to appeal to children due to the colours and flavours. Not only is it having an impact on a whole generation, but it is also taking its toll on the environment and safety of workers working in waste management where fires have broken out due to these not being disposed of correctly.
Also discussed was the restricting of flavours, and packaging, regulating the point of sale displays and preventing giving out free samples. Additionally, there is not currently an age restriction on vapes that don’t contain nicotine, this was also discussed at the consultation.
Story wrote by Will Drysdale.
