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[BUSINESS] · United Kingdom · 13 sources

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United Kingdom implements new excise duty on vaping products

A new Vaping Products Duty has come into force in the United Kingdom, imposing an excise tax of £2.20 for every 10ml of vaping liquid. The measure, implemented by HM Revenue and Customs (HMRC), applies to all vaping liquids manufactured in or imported into the UK, regardless of nicotine content. The duty is payable by manufacturers, importers, and approved warehousekeepers, though businesses may choose whether to pass these costs to consumers.

To combat illicit trade and improve supply chain traceability, the government has also launched the Vaping Duty Stamps Scheme. While a six-month grace period allows retailers to sell existing unstamped stock until March 31, 2027, all products sold in the UK must carry a valid duty stamp from April 1, 2027. Additionally, tobacco duties have increased by £2.20 per 100 cigarettes to maintain the financial incentive for smokers to switch to vaping.

Government officials stated the measures aim to reduce the affordability and appeal of vaping among children and non-smokers. However, industry research from E-Cigarette Direct suggests the tax could have unintended consequences, with 15% of surveyed vapers indicating they might turn to illegal products due to higher prices.

Entities

E-Cigarette Direct · HM Revenue and Customs · James Murray · Karin Smyth · United Kingdom

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