Half of vapers have no idea the rules are changing
Vaping is set to become more expensive
The cost of vaping will rise by nearly £300 a year when a new tax law comes into force next month. Vaping Products Duty will tax e-liquid at a flat rate of 22p per millilitre – or £2.20 per 10ml – plus 20 per cent VAT. The price of a 10ml bottle will rise by at least £2.64.
Assuming a vaper uses two 10ml bottles of e-liquid each week, the tax would increase their spending by around £275 a year, equivalent to £5.28 a week. This means if these rates remain in place they can expect to spend £8,220 more over a 30-year period than they would have prior to the rise in taxes.
HMRC has estimated 5.1 million people will be affected by the duty, while the Office for Budget Responsibility forecasts it raising £600 million a year by 2030/31. A typical 10ml bottle of e-liquid, which currently costs roughly £2.50 to £3, is expected to rise to more than £5 after the tax is introduced on October 1.
Rachel Nixon, HMRC’s Director of Indirect Tax, said: “With one month to go until Vaping Products Duty comes into force, manufacturers, importers and warehousekeepers should have applied to HMRC for approval and be preparing to pay any of the new excise duty due, to comply with the new requirements from 1 October 2026.”
She added: “Businesses that do not have approval by that date cannot produce vaping products in the UK and may be unable to trade. They could also face operational delays and may be subject to civil or criminal sanctions.”
The Government said the objective is to reduce the affordability and appeal of vaping, particularly among young people and non-smokers, while maintaining a financial incentive for smokers to switch away from tobacco. The new tax is expected to raise more than £550million a year by 2030-31, according to Treasury analysis.
The Government said vaping is less harmful than smoking and can assist adult smokers in quitting. However, it maintains that children and non-smokers should never vape.
Research of 1,000 adults who vape found 62 per cent are concerned about the upcoming tax affecting their finances, with 68 per cent already feeling the strain of everyday rising costs. 48 per cent said they would consider buying vape products from the black market if they were cheaper.
Guy Lawler, managing director of Vapekit, said: “Most vapers we surveyed had not even heard about the new vape tax coming in October. With the changes now just weeks away, affordability is becoming a real consideration for vapers across the UK.”
Currently, vapers spend £15.25 per week on vaping products – including e-liquids, vape pods and refillable vape kits – which works out to be around £793 a year. This means the tax would increase their annual spend to £1,067 if they were to use two 10ml bottles of e-liquid each week.
Vapers are set to cut back on eating out, alcohol and shopping to adjust to the new ruling, according to the OnePoll.com figures.
Guy Lawler added: “A recent review by the Cochrane Library, which specialises in reviewing medical research, looked at 80 studies into quitting smoking and found nicotine vapes work better than patches or gum. The charity Action on Smoking and Health says two and a half million people have used a vape to stop smoking in the last five years alone.
“Now this tax will make the most effective way of quitting far more expensive.”
