Measure
As announced by the previous government, a new duty will be introduced on vaping products. A flat-rate excise duty will be applied to all vaping liquids at a rate of £2.20 per 10ml.
This will be accompanied by an equivalent one-off increase of £2.20 per 100 cigarettes/50g of tobacco.
The government has also launched a further consultation to seek views from relevant industry stakeholders on the proposed design of a Vaping Duty Stamp Scheme, and whether additional controls should be implemented on the supply of nicotine.
Businesses who are involved in the production or importation of cigarettes/tobacco or vaping products. Individuals who buy and use either vapes or cigarettes/tobacco.
The introduction of duty on vaping products and the accompanied rate changes for cigarettes/tobacco will be effective from 1 October 2026. Businesses will be able to apply for approval from 1 April 2026.
The new consultation is due to run from 30 October to 11 December 2024.
This measure follows the announcement in the 2024 Spring Budget on the application of a duty rate to vaping liquids by 2026. However, it differs in as far as it will take the form of a flat excise duty rate, as opposed to the tiered system previously proposed.
The measure will bring the UK in line with other comparable economies, with the EU planning a standardised bloc-wide levy on vaping products.
Implementation of the measure appears to recognise the role of vaping products in supporting individuals quitting smoking and ensures that vaping will still remain a cheaper alternative to smoking tobacco products.