UK vapers face potential 264% price hike from new vape duty

New research from the UK Vaping Industry Association (UKVIA) indicates that many adult vapers are unaware of an upcoming vape duty set to take effect on October 1. The tax, set at £2.20 per 10ml of e-liquid (rising to £2.64 with VAT), could increase product prices by as much as 264%.

According to a survey of nearly 3,500 adults, approximately half of respondents fear they may return to smoking or turn to the black market due to the price hikes. The UKVIA warned that lower-income users may be disproportionately affected, as the largest price increases are expected on lower-cost products. Additionally, nearly 60% of those surveyed were unaware that the duty would apply to nicotine-free products.

The UKVIA also highlighted a discrepancy in consumption data, noting that average weekly e-liquid consumption was reported at 24ml, more than double the 11.9ml estimate used by HMRC in its modeling. This finding has informed a report by the Centre for Economics and Business Research (Cebr) suggesting that the Treasury could achieve its revenue goals through a lower tax rate.