UK Launches New Vaping Tax

A new tax on vaping products has officially come into effect across the UK in a government bid to reduce the appeal and affordability of e-cigarettes for non-smokers and young people.

Under the Vaping Products Duty, a rate of £2.20 is charged per 10ml of e-liquid. The tax applies universally to all vaping liquids regardless of nicotine content and is levied directly on approved manufacturers, importers, and warehouse operators. Businesses then decide whether to pass those extra expenses down to retailers and everyday shoppers.

To protect the financial incentive for smokers to switch, tobacco duty rates also saw a simultaneous one-off increase of £2.20 per 100 cigarettes or 50 grams of tobacco, layered on top of the standard tobacco duty escalator.

Alongside the tax, HM Revenue and Customs (HMRC) has introduced the Vaping Duty Stamps Scheme to track products digitally across the supply chain and clamp down on illegal trade. From April 1st, 2027, every vape sold in the UK will be required to carry a valid duty stamp. In the meantime, wholesalers and retailers have been granted a six-month grace period ending March 31st, 2027, to clear existing unstamped stock.

Under updated rules taking effect alongside the duty, travelers entering Great Britain can now bring up to 50ml of vaping liquid for personal use without paying taxes, with larger amounts requiring formal declaration and full duty payment.

The tax coincides with wider planning law adjustments in England that require all prospective vape shops to obtain local council permission before opening, giving local authorities tighter control over high street retail spaces.

Addressing the enforcement efforts, James Murray, Financial Secretary to the Treasury and Paymaster General, stated:

"Our new measures will help get illicit vapes off high streets across the country. We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t."

Minister of State for Health Karin Smyth emphasized the public health rationale behind targeting affordability:

"Our public health advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape. 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."

Recent scientific reviews indicate that while vaping remains safer than traditional smoking, it carries clear health risks for younger users, including wheezing, sleep disruption, oral health issues, and eye symptoms.

Reaction among vapers remains mixed. While some young users express a willingness to stock up or cut down due to cost-of-living pressures, others admit the price increase could push them to quit the habit altogether.

However, specialty retailers and industry representatives warn that the policy could backfire. Jordan Apap, a sales assistant at Berkshire Vapers, noted that the tax puts heavy pressure on dedicated shops providing specialist quitting guidance, warning:

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

John Dunne, Director General of the UK Vaping Industry Association, voiced strong opposition to the rate, warning of potential unintended health consequences:

"There is absolutely no debate that we need to prevent young people from accessing vaping products, and it’s not that the industry is flatly opposed to a duty increase, but the incoming rate is nothing short of a public health time bomb. If we want to talk about duty, how about the government’s duty to protect one of the most effective tools available to adults trying to quit smoking?"

"The government says the duty will help reduce the appeal of vaping to young people while preserving the financial incentive for smokers to switch, with the money raised also intended to support the NHS."

"But if the result is more adults returning to smoking and a greater burden on the health service from smoking-related illness, that is completely at odds with what this policy is trying to achieve."