The UK plans to impose a new tax on vapes starting in October 2026, adding 22 pence (approximately $0.30) per millilitre of e-liquid. This could see the price of a 100ml bottle of e-liquid soar from the current price of around £15 (approximately $20) to over £40 (approximately $54). The move aims to discourage non-smokers from trying vapes and to raise funds for public services. However, the flat tax rate will have the greatest impact on large bottles of e-liquid, and zero-nicotine products will also be subject to the tax. There are concerns that the high prices could drive users back to more harmful cigarettes or turn to illegal sources, and that small vape shops may struggle to withstand the pressure of the policy change.
Key Points:
- Tax Details: The UK’s vape tax of 22 pence (approximately $0.30) per milliliter will be implemented in October 2026. The price of a 100ml bottle of e-liquid after tax could exceed £40 (approximately $54), the largest increase in the industry’s history. Policy Objective: To discourage non-smokers from trying vapes and to raise funds for public services like the National Health Service (NHS).
- Affected Groups: Small, independent vape shops may face difficulties in surviving due to a loss of customers due by price increases.
- Potential Risks: High prices may encourage users to return to cigarettes or turn to mixing their e-liquids or illegally importing them, creating new public health concerns.
- Policy Background: With the UK banning disposable vapes in 2025 just months away, the combined impact of these two policies on the industry will be felt in the short term.
The UK plans to impose a new vape tax based on milliliters in 2026
According to a report by the Daily Star on August 9th. The UK government plans to implement a new vape tax of 22 pence (approximately $0.30) per milliliter in 2026. At that time, the price of a 100ml bottle of flavored e-liquid will increase from £15 (approximately $20) to approximately £40 (approximately $54).
Vape Ease UK, a retailer of vape equipment, said: “vape prices in the UK are about to rise significantly. From October 2026, the UK government will introduce a new vape tax, adding an extra 22p per millilitre of liquid. The price of a standard 100ml bottle of e-liquid will jump from the current £14.99 (about $20) to over £36.99 (about $50) after the tax. Some high-end products could cost more than £40 (about $54) per bottle. The move is intended to discourage non-smokers from taking up vapes and to help fund public services like the National Health Service (NHS). However, the flat-rate tax structure means that large bottles of liquid, often the best value for regular users, will be hit hardest. This represents the largest price increase in the industry’s history.”
Industry insiders worry that doubling prices will hit the market hard
The report warns that even those trying to quit vaping will be affected, and that those who buy zero-nicotine e-liquid will also be subject to the tax.
The study stated: “One of the biggest concerns is that high vape prices could drive people back to smoking cigarettes, which, while more harmful, will now be more similar in price.”
According to the UK Office for National Statistics, a 20-pack of cigarettes costs an average of £16.60 (about $22) in the UK.
The report also noted: “The vape tax will come just months after the UK bans disposable vapes in 2025. Vape Ease UK says small, independent vape shops may struggle to survive these two policy changes. These shops rely on regular and budget-conscious customers. When prices double, many may reduce their purchases or stop buying altogether.” Some vape users may also turn to mixing their e-liquids or illegally importing them to avoid taxes, raising further public health concerns.
References:
