Taxation of e-cigarette brands Vape
In this year 2024 March 6 in Japan’s budget, Jeremy Hunt, the UK Chancellor of the Exchequer, announced that the UK government will comply with 2026 10 a new tax on e-cigarette brands to be levied from the start of each month. Right now, vapes are based on e-cigarettes 20% VAT is levied at the standard rate, but the government plans to prevent young people and non-smokers from inhaling e-cigarettes by increasing the duty.
What does this mean for you?
Nothing now. Prices for smokeless tar e-cigarettes and vapes with smoked tar used in e-cigarettes will rise from October 1, 2026, if the consultation is not amended.
The government’s consultation also includes a tobacco tax to increase the cost of cigarettes to ensure that smoking remains more expensive than vapes. By increasing the cost of cigarettes and cigarettes we can still incentivize people to give up smoking financially.
Jeremy Hunt said… “Vapes can also play a positive role in helping us to quit smoking”, which is why it’s still necessary. “A one-off increase in tobacco tax”. Hunt added that he wants to “keep the financial incentive to choose vapes over smoking”.
How will inhalers be taxed from October From month 2026?
Starting October 1, 2026, the government will impose a new tobacco tax on e-cigarette liquids. E-cigarettes will be taxed at three different e-cigarette tax bands:
E-liquid smokeless tar (0 mg)
- 1 tax per 10 mL (except for production costs). Currently approximately equivalent to the total general tobacco tax. 2.4%.
0.1 mg-10.9 mg vapes (smoky tar/smoky tar/mL) - Tax of $2 per 10 mL (except for production costs). Currently approximately equivalent to the total general tobacco tax. 4.7%.
- 11mg and above (nicotine content per mL)
- 3 per 10 mL (excluding production costs). Currently, this is approximately equivalent to the total general tobacco tax. 7.1%.
How will cigarettes be taxed from October 2026?
A disposable tobacco tax will be introduced, increasing by $2 per 100 sticks or 50 grams of cigarettes.
Why tax straws?
Taking into account the views of public health experts, the Government has concluded that inhaling e-cigarettes is not without risk and that this could lead young people who have never smoked into a harmful and addictive future.
The Government says it will address the problematic ‘pocket money’ pricing of inhaled inhalers by increasing the cost of inhalers and introducing a level of tax on inhaler juice.
The 2023 Annual Study found that the price of inhaled e-cigarette brands affects consumption levels and that the public would be less likely to inhale vapes if they were more expensive.
“Overall, 62 percent of current inhalers said they would inhale less if the price doubled, and 33 percent said it would remain consistent.”
What is the goal of taxing Vape products?
- Raise funds by 2028-29 in the financial year £500 million
- Reduce the total number of non-smokers and young people inhaling inhalers by reducing the price of inhalers
- Incentivize inhalers to use inhalers with low concentrations of smoke tar and no nicotine
- Encourage e-liquid manufacturers to reduce the nicotine content of their products
- Increase revenue to fund NHS and vaping initiatives that support a smokefree generation
- Ensure that the introduction of e-cigarettes does not make smoking more attractive
Will disposable straws be banned?
The Chancellor of the Exchequer announced the Government’s plans to ban disposable straws “at the earliest opportunity” alongside the categorization of e-cigarette liquids for tax purposes. The purpose of disposable vaping is to prevent young people and non-smokers from inhaling e-cigarettes. This is because it is attractive to children and harmful to the environment, including batteries and plastic waste.
The response to the ban would be to encourage adults who currently inhale disposable vapes to switch to refillable e-cigarettes.
What do other countries pay taxes on? Do vape goods pay taxes?
- Spain
- Slovenia
- Germany
- Netherlands
- Norway
- Canada
- Georgia in the USA
- Virginia in the USA
What other countries have banned disposable inhalers?
Other countries, including Australia, Germany, France, and Ireland, have taken a similar approach by restricting the sale of disposable inhalers to help prevent youth from inhaling e-cigarettes. Canada has banned conspicuous displays of merchandise and inhaler advertising in (non-inhaler store) retail locations. The Netherlands and Finland use standardized packaging and ban all flavored e-liquids.
