A new tax on vapes unveiled in the UK’s spring Budget contradicts the country’s aim to be a world leader on smoking cessation, campaign groups warn.
British Chancellor Jeremy Hunt announced the levy on the smoking alternatives in a bid to make them unaffordable for children.
The move - which is set to take effect from October 2026 - will bring in more than £445 million a year for the UK treasury by 2028-29.
However, vape action groups say the move is a “huge step backwards” in the UK’s bid to become a world leader on smoking cessation. They say the tax will put lives at risk as higher prices will put people off using vapes as a tool to give up smoking.
Michael Landl, Head of World Vapers’ Alliance, said: “Cost is a high determinant for switching to less harmful options and this will only make alternative products less affordable. It’s illogical to discuss reducing taxes for individuals while simultaneously raising taxes on smoking cessation aids.
“Just last year, the UK government took a pioneering step in harm reduction policy by introducing the innovative ‘Swap to Stop’ program. The new tax increase is a huge step backwards and risks leading to the growth of the black market and illicit trade in e-cigarettes and other nicotine-containing products.
“The UK should follow the example of Sweden which last year lowered the tax on snus, its leading harm reduction product. Now, Sweden is about to become the first smoke-free country in the world. The UK could be the leader of smoking cessation thanks to vaping.”
Under current rules, vapes are subject to 20 per cent VAT but not a specific tax like normal cigarettes are.
A 12-week consultation on the new proposal is to be held, but the tax could see e-liquids with more nicotine content taxed more highly:
£1 per 10ml for nicotine free e-liquids
£2 per 10ml for e-liquids containing nicotine at concentrations between 0.1 to 10.9mg per ml
£3 per 10ml for e-liquids containing nicotine at concentrations 11mg per ml, or above
However, campaign groups warn that taxing higher strength nicotine will backfire as it will simply encourage more frequent use of lower strength vapes, which carries greater risk.
Research shows that vapers using lower strength nicotine vapes engage in “compensatory puffing” and double their consumption compared to higher strength vapes. Critics say the tax will create the biggest barrier for people wanting to switch from smoking, as the highest strength vapes will be the most expensive.
It will also hit the hardest up, hardest. For example, if you buy e-liquid from Poundland - a shop popular with people on a tight budget - it will go from £1 to £4 with the extra tax.
The latest move follows a new proposed UK law to ban disposable vapes and certain flavours, and enforce plain packaging.
The New Nicotine Alliance says the tax is more evidence of the UK government “unravelling its world-leading harm reduction strategies.”
In a statement, it says: “The New Nicotine Alliance is disappointed that the government is abandoning opportunity after opportunity to increase the chances of achieving its own Smoke-free 2030 goal. In just a few short weeks, the UK government has undone its former position as a world-leader in reducing the prevalence of smoking.”
What can I do?
The new tax on vapes isn’t certain to happen - yet. You can have your say by responding to the government’s consultation, which closes on May 29, 2024.
The Vaping Products Duty Consultation sets out the proposals for how the duty will be designed and put into practice.
Give your response by using the template here and emailing it to vapingproductsduty@hmrc.gov.uk.
Write to your MP
Writing to politicians is a powerful way to raise awareness of the importance of vaping as a tool to help beat smoking.
The UK Vaping Association provides a useful email template here.
You can also join the conversation about vaping laws and taxes on social media.
UK Chancellor Jeremy Hunt:
X: @Jeremy_Hunt
Instagram: JeremyHuntMP
Facebook: Facebook.com/jeremyhuntGandA
UK Health Secretary Victoria Atkins
X: @VictoriaAtkins
Instagram: VictoriaAtkinsMP
Facebook: Facebook.com/VictoriaAtkinsOfficial
