From October 2026, the UK budget plans to adjust the tax on vapes and tobacco, a new tax of £2.20 per 10 ml of vape oil will be levied. UKVIA criticized the move as unfair and worried that the new tax would affect 3 million adults who have quit smoking through vapes.
New tax on vapes to be implemented in the UK from 2026
According to the BBC on October 31. British Finance Minister Rachel Reeves reported that the cost of vapes and cigarettes will rise due to a new round of tax increases, so their budget report shows.
From October 2026, a new £2.20 tax will be imposed on every 10 mL of vape. At the same time, tobacco taxes will also increase by the same amount per 100 cigarettes to “maintain economic incentives from cigarettes to vapes.”
In its last budget before losing the election, the former Conservative government signaled its intention to introduce a vape tax and set up a public consultation to discuss the changes. They say the tax is aimed at making it harder for young people and non-smokers to access vapes while raising money for a key public service such as the NHS. Previously, the government had proposed different levels of taxes based on the different amounts of tar in e-liquids, but Reeves opted for a flat rate.
John Dunn, director of the UK vape Industry Association (UKVIA), called the vape tax a “ridiculous exercise” that punishes those who use vapes as a way to quit smoking.
- “About 3 million adults have quit smoking because of vapes, which are strongly proven to be the most effective way to quit smoking. It saves the National Health Service (NHS) millions of pounds and cures smoking-related diseases.
The new Labor government has announced plans to stop the marketing of vape brands that appeal to children and plans to ban single-use vapes by June 2025.
Separately, the ministers pledged to continue a plan set by former President Rishi Sunak to ban people born in 2009 or later from buying tobacco.
