Measure
The government will introduce a new duty on vaping products with a rate of £1.00 per 10ml for nicotine free liquids, £2.00 per 10ml on liquids that contain 0.1-10.9mg nicotine per ml and £3.00 per 10ml on liquids that contain 11mg per ml. A consultation has been published on the policy design and technical details.
There will also be a one-off tobacco duty increase of £2.00 per 100 cigarettes or 50 grams of tobacco.
Businesses that are involved in the production or importation of tobacco or vaping products. Individuals who buy and use either vapes, e-cigarettes or tobacco products.
Both the new vaping and tobacco duties will come into effect from 1 October 2026. Registrations for the Vaping Products Duty open from 1 April 2026.
The measure will bring the UK in line with other economies in the EU planning a standardised bloc-wide levy on vaping products, and it will result in additional costs for businesses that are involved in the importation or manufacture of these products.
The government cite the need to discourage non-smokers, especially young people, from vaping as the aim of the measure.
The aim of introducing a rate increase to tobacco products, alongside the implementation of the duty rate on vaping products, recognises the role vapes and e-cigarettes play in supporting individuals quit smoking. This will result in vapes and e-cigarettes remaining a cheaper alternative to tobacco products.
The consultation to gather views on the new duty will run until 29 May 2024.