Sadly it has been announced after the Spring Budget statement today (Wednesday 6th March 2024) that the UK is to tax Vaping products.

You can read the full statement here – but I will just focus on the area related to vaping.

In the summary the reasoning for this decision is…

“Health advice is clear that vaping is not risk free and those who do not smoke should not vape. A new duty on vaping, introduced from October 2026, will discourage non-smokers from taking up vaping and raise revenue to help fund public services like the NHS. This new duty will raise £445 million in 2028-29.

Last year, the government announced ambitious plans to protect future generations from the harms of smoking and create the first smokefree generation. To ensure vapes continue to play a role in helping smokers give up cigarettes, tobacco duty will also be increased from October 2026 to maintain the current financial incentive to choose vaping over smoking. This will raise a further £170 million in 2028-29.”

“The government is committed to creating a smokefree generation and tackling youth vaping. To support this the government is introducing a new duty on vaping and increasing tobacco duty from October 2026, raising revenue to support public services like the NHS.”

The statement says…

5.31 Vaping Products Duty

The government will introduce a new duty on Vaping Products from 1 October 2026, with registrations for the duty opening from 1 April 2026.

The rates will be £1.00 per 10ml for nicotine free liquids, £2.00 per 10ml on liquids that contain 0.1-10.9 mg nicotine per ml, and £3.00 per 10ml on liquids that contain 11mg or more per ml.

A 12-week consultation will be published on the policy design and technical details alongside the Spring Budget.

The government will also introduce a one-off tobacco duty increase of £2.00 per 100 cigarettes or 50 grams of tobacco from 1 October 2026.

What Does That Mean For Vapers?

So basically there will be a tax on e-liquid to be introduced in 2026.

• 0 Nicotine / Nicotine Free e-liquid – will be taxed at £1 per 10ml.
• 0.1-10.9mg Nicotine e-liquid – will be taxed at £2 per 10ml.
• 11mg or higher Nicotine e-liquid – will be taxed at £3 per 10ml.

A 12 week consultation will be apparently published – to refine the policy design and technical details. However I am not sure if this will be a public consultation?

The price of tobacco will increase in order to keep vaping as the cheaper option to incentivise swapping.

Industry & Advocacy Responses

As the industry responds to the announcement, I will add their responses below.

I have covered various responses to the taxation idea before the announcement here.

WVA (World Vapers’ Alliance) Response

Press Release

(Copied & Pasted)

For Immediate Release

6 March 2024

The UK’s announced increased vaping tax jeopardises the country’s success in beating smoking

London, UK – Today the UK government announced a new tax on vaping products. This move raises significant concerns for the country’s harm reduction policy trends, which has previously boasted its leadership in smoking cessation efforts.

The recent policy changes, including the proposed generational ban for less harmful heat-not-burn products and disposable vapes, are a step in the wrong direction, says the head of the global vaping consumer movement, World Vapers’ Alliance, Michael Landl.

“Higher prices for less harmful vapes are placing the lives of millions of former smokers and current vapers in jeopardy. The cost is a high determinant for switching to less harmful options and this will only make alternative products less affordable. It’s illogical to discuss reducing taxes for individuals while simultaneously raising taxes on smoking cessation aids,” said Landl.

According to the reports, the UK Treasury expects to raise more than £500m a year by 2028-29 between the vaping tax and the increase in tobacco duty.

“Just last year, the UK government took a pioneering step in harm reduction policy by introducing the innovative ‘swap to stop’ program. The new tax increase is a huge step backwards and risks leading to the growth of the black market and illicit trade in e-cigarettes and other nicotine-containing products,” added Landl.

“The UK should follow the example of Sweden which last year lowered the tax on snus, its leading harm reduction product. Now, Sweden is about to become the first smoke-free country in the world. The UK could be the leader of smoking cessation thanks to vaping.” concluded Landl.

For more information and to support our cause, visit our website and join the movement towards a better, smoke-free future.

– END

Industry & Advocacy Social Media Responses

Utter stupidity from @RishiSunak‘s government. @Jeremy_Hunt https://t.co/INBnPXMzTk

— Martin C (@NannyFreeState) March 6, 2024

“Forget sin taxes, this is a saint tax. Vapers did what the government wanted and gave up smoking. They are now being punished for it.”

Our @cjsnowdon comments on the government’s plans to tax e-cigarette fluid.https://t.co/S6JlHHTnZN

— IEA (@iealondon) March 6, 2024