Economy & Policy

UK Vaping Tax Takes Effect at £2.20 Per 10ml of E-Liquid

The UK's Vaping Product Duty starts at £2.20 per 10ml, with six months to clear old stock. Industry figures warn legitimate shops could close within two years.

By Grace Kim

3 min read

Updated

Vape prices to rise as new tax takes effect
Vape prices to rise as new tax takes effectAI-generated

What's News

  • The Vaping Product Duty applies at £2.20 per 10ml of e-liquid to all vaping products, with or without nicotine.
  • Tobacco duty rose by £2.20 per 100 cigarettes or 50g of tobacco; HMRC says this preserves the incentive to switch to vaping.
  • All UK vape sales must carry a traceable HMRC stamp from April, and new English vape shops will need council planning permission.

Vape prices in the UK will rise from today as the Vaping Product Duty comes into force at £2.20 per 10ml of e-liquid, one of the most significant fiscal interventions in the sector to date. Many customers will not feel the increase immediately: sellers have six months to shift existing stock at pre-duty prices.

The duty applies to all vaping products regardless of whether they contain nicotine. The government's stated aim is to make vaping less attractive to children and young people, as more evidence of adverse health effects emerges, particularly among minors.

Tobacco duties rose on the same day, by £2.20 per 100 cigarettes or 50g of tobacco. HMRC said the increase maintains the financial incentive for smokers to switch to vaping rather than stay on cigarettes.

Vapers split on whether the tax bites

The BBC spoke to vapers in Reading, who gave mixed verdicts on whether the new duty would change behaviour. Mackenzie Bird, 19, a regular vaper for three years, said she was "fine" with the duty and it would not stop her.

"I don't know how many people it'll actually deter," she said. "I'll probably just stock up."

Others said higher prices could push them to cut back or quit. Cara Lewis-Rimes said she thinks the changes will force vapers to cut down because of the cost of living. Dylan Killner said he might quit altogether.

"I don't think it's doing me any favours... the health factor around it as well is not great," he said.

Stamps and planning curbs target illicit trade

HMRC is also launching a traceable stamp for vaping products that can be tracked throughout the supply chain. All vapes sold in the UK must carry the stamp from April.

The tax forms part of a broader effort to combat illicit trade, a growing problem on UK high streets. Last month the prime minister announced new powers for councils aimed at addressing high-street decline, including the number of vape shops. Changes to planning law in England mean every new shop selling e-cigarettes must apply to its local council for permission to open.

Health Minister Karin Smyth framed the measures as part of a wider youth-vaping strategy.

"These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets," Smyth said.

James Murray, the Financial Secretary to the Treasury, said the government was "backing all those retailers who play by the rules".

Industry warns of shop closures

The vaping industry lobbied against the duty, arguing that affordable vapes help people quit smoking. Jordan Apap, a sales assistant at Berkshire Vapers, said the tax would "put a lot of strain on legitimate vape shops" that offer more specialist advice and services than convenience stores and phone shops selling vapes.

"There is a real and genuine risk that we will cease to exist within a year or two," Apap said.

John Dunne, director general of the UK Vaping Industry Association, went further.

"This is nothing short of a tax on public health," Dunne said. He argued vapes had helped "millions of adults cut down on or stop smoking".

"Protecting young people is essential. But that means stronger enforcement against illegal and rogue traders, not making legal vaping more expensive for adults trying to stay away from cigarettes," he said.

Health evidence remains contested

Experts say vaping is much safer than smoking, but not risk free, and the long-term effects are less clear. A recent review of vaping studies found an association in children and young people with wheezing and coughing, poor oral and dental health, poor sleep, mental health problems and eye symptoms. The NHS has said that children and non-smokers should never vape.

With the duty live, the stamp regime arriving in April and new planning rules in England, vape retailers face a compressed window to prove that legal, regulated sales can survive a policy squeeze designed to shrink the market they serve.

Source: BBC Business

Share this article:

More from Grace Kim

Grace Kim

Show full bio

Market editor covering industry trends and analytics at Business Bearings.

372 articles

Related articles

« Previous article