UK launches new vaping tax to deter young people and tackle illegal trading

A new tax on vaping has come into effect as part of targeted efforts to reduce the habit's appeal to children and non-smokers.

The vaping products duty is set at £2.20 per 10ml of vaping liquid, whether or not it contains nicotine, and must be paid by manufacturers, importers and warehouse operators approved by HM Revenue and Customs (HMRC).

It will be up to these operators to decide if they pass the extra duty cost on to shopkeepers and consumers.

HMRC has also introduced the Vaping Duty Stamps Scheme, which it hopes will offer full traceability throughout the supply chain to boost consumer protection and support high streets against illegal trade.

A six-month grace period is being provided to give wholesalers and retailers time to sell off existing stock before every vaping product sold in the UK requires a valid vaping duty stamp from 1 April.

Tobacco duty rates have also been raised to preserve the financial incentive for existing smokers to switch to vaping, rising by £2.20 per 100 cigarettes or 50 grams of tobacco alongside the standard tobacco duty escalator.

Updated allowances for travellers entering Great Britain from 1 October allow individuals to bring up to 50ml of vape liquid for personal consumption without incurring duty or tax.

Any volume brought above this limit must be declared and duty paid in full.

James Murray, Financial Secretary to the Treasury and Paymaster General, said: "Our new measures will help get illicit vapes off high streets across the country.

"We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t."

Health minister Karin Smyth said: "Our public health advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.

"These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets."

UK Vaping Industry Association director general John Dunne said: "There is absolutely no debate that we need to prevent young people from accessing vaping products, and it’s not that the industry is flatly opposed to a duty increase, but the incoming rate is nothing short of a public health time bomb.

"If we want to talk about duty, how about the Government’s duty to protect one of the most effective tools available to adults trying to quit smoking?

"The Government says the duty will help reduce the appeal of vaping to young people while preserving the financial incentive for smokers to switch, with the money raised also intended to support the NHS.

"But if the result is more adults returning to smoking and a greater burden on the health service from smoking-related illness, that is completely at odds with what this policy is trying to achieve."