New York and UK implement new taxes on nicotine and vaping products

New York has implemented a 75 percent wholesale excise tax on alternative nicotine products, including nicotine pouches such as ZYN. State officials, including Budget Director Blake Washington, have characterized nicotine pouches as a “gateway” drug and a public health concern, particularly regarding youth usage. While the tax aims to raise state revenue and address health issues, manufacturers of ZYN have criticized the measure, arguing that high taxes on smoke-free alternatives may discourage smokers from switching to less harmful products.

In the United Kingdom, HM Revenue and Customs (HMRC) has announced upcoming changes to vaping product regulations. Starting October 1, 2026, a new excise duty of £2.20 per 10ml will be applied to vaping products, regardless of nicotine content. This is part of a broader government initiative to create a smoke-free generation and reduce youth vaping. The policy includes a Vaping Duty Stamps Scheme; products manufactured in or imported into the UK on or after October 1, 2026, must bear a duty stamp, with full retail compliance required by April 1, 2027.