The UK Government’s decision to introduce a Vaping Products Duty at a flat rate of £2.20 per 10ml vaping liquid from 2026 will inhibit adult smokers from using vapes to help them quit, and act as a setback for those who have already made the switch, according to the UK Vaping Industry Association (UKVIA).
John Dunne, Director General of the UKVIA, said :
“Whilst a flat rate tax versus one graded on different nicotine strengths is favoured so as not to deter smokers who rely on higher concentrations of nicotine when they start transitioning over to vapes, the additional cost of £2.64 (including VAT) per 10mls of eliquid is a kick in the teeth for former adult smokers who have switched to vaping to quit their habits. It will also be the highest rate in Europe.
“Some 3m adults are former smokers thanks to vaping, which is strongly evidenced as the most effective way to quit conventional cigarettes, saving the NHS millions of pounds in treating patients with smoking related conditions. This announcement today deters adult smokers from considering vapes as a method to give up their habits, and hits the lowest paid who go for more price sensitive e-liquid options, which currently start at 99p and will rise to £3.83, representing a shocking rise of 267%.
“For a Government that places a great focus on the NHS, it is a nonsensical move to put a severe punitive tax level on vaping when the category has done so much to reduce the number of adult smokers requiring medical attention by being a driving force in the decline of smoking rates to record low levels in recent years.
“Today’s announcement is effectively a revenue grab from former smokers and penalising them for making considerably less harmful choices. It would also make more sense for vapes to be taxed at a lower VAT rate, which is the case for other Nicotine Replacement Therapies, which have proven to be considerably less successful than vapes in helping smokers quit.
“We will be responding to the Vaping Products Duty Consultation that sets out the proposals for how the duty will be designed and implemented.”
The Independent British Vape Trade Association (IBVTA) also raised concerns.
IBVTA Chair, Marcus Saxton, said: “The government has already proposed regulation that will ban single use products, which despite helping many adult smokers access vaping, have via irresponsible retailers been disproportionately accessible to children.
“It would seem a little questionable then to increase the cost of vaping, especially given there are still around six million adult smokers for who you’re trying to give every opportunity to make the transition to less harmful products.”
