UK retail bodies seek £140m to combat illicit vape market amid new tax

The Association of Convenience Stores (ACS) has called for a £140 million investment over the next five years to combat the illicit vape market in the UK. While acknowledging a £6 million investment in Trading Standards via the High Streets Organised Crime Unit, the ACS warned that more sustainable funding is required to support legitimate businesses and address the rise of rogue popup shops and mini marts.

This call for enforcement comes as the UK introduces a new Vaping Products Duty. The tax, which imposes a charge of £2.20 per 10ml of vaping liquid regardless of nicotine content, is part of a government strategy to create a “smoke-free generation” and reduce youth vaping. The UK Vaping Industry Association has cautioned that this new duty could inadvertently drive consumers toward the black market.

Under the new regulations, manufacturers and importers must obtain approval from HM Revenue & Customs (HMRC) to avoid sanctions. The framework also mandates a duty stamp system to improve traceability. While transitional stamps may be used through 2026, a digital duty stamp system will eventually be required to verify products throughout the supply chain.