The Vaping Products Duty will be a flat-rate levy and will apply to all vaping liquids
Britain’s vapers are braced for a substantial price surge following the introduction of a new government Vaping Products Duty (VPD) on all vaping liquids. The fixed levy of £2.20 per 10ml will be imposed regardless of whether a product contains nicotine and is scheduled to take effect this autumn.
With VAT included, this will inflate the cost of each 10ml bottle of vape liquid by £2.64. Industry chiefs warn that the most affordable products, currently starting at around 99p, will soar by a staggering 267% to £3.83. They’ve slammed the initiative as a revenue grab that punishes people attempting to quit tobacco.
HM Revenue & Customs stated the duty aims to “reduce the number of people taking up vaping, particularly non-smokers and young people, by reducing affordability”, whilst preserving incentives for smokers to transition to less harmful options.
An official policy document estimates that approximately 5.1 million people who vape will be affected, with frequent users bearing the heaviest financial burden. The government expects the measure to raise £135 million in 2026–27, climbing to £565 million by 2030–31.
Officials stress that the flat rate is structured to streamline compliance for businesses and HMRC, and to minimise the likelihood of disputes regarding product classification based on nicotine levels. “Those who do not already vape or smoke should not start,” states the government’s policy paper, echoing advice from the Chief Medical Officer, who anticipates the duty will have a “significant positive effect on health outcomes.”
The government has verified that CBD vaping liquids designed for use in a vape device will also be subject to the new duty, at the same rate of £2.20 per 10ml, as they fall within the classification of vaping products.
From April 2027, all vaping products will also necessitate a Vaping Duty Stamp (VDS) to enhance traceability and tackle illegal trade. HMRC cautions that non-compliance could lead to civil or criminal penalties, in line with other excise duties.
The government emphasises that the duty will “support broader public health objectives aimed at reducing youth access to illicit vaping products”.
John Dunne, Director General of the UK Vaping Industry Association (UKVIA), has criticised the additional cost of £2.64 (including VAT) per 10mls of e-liquid as a blow to former adult smokers who have turned to vaping to quit their habits. He pointed out that this will be the highest rate in Europe.
He said: “Some 3m adults are former smokers thanks to vaping, which is strongly evidenced as the most effective way to quit conventional cigarettes, saving the NHS millions of pounds in treating patients with smoking related conditions.”
Dunne added: “It is a nonsensical move to put a severe punitive tax level on vaping when the category has done so much to reduce the number of adult smokers requiring medical attention by being a driving force in the decline of smoking rates to record low levels in recent years.”
Meanwhile, Rachel Nixon, HMRC’s Director of Indirect Tax, said: “We are working closely with the vaping sector ahead of these changes. Businesses are encouraged to visit GOV.UK and search ‘prepare for vaping duty’ to access guidance and updates. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.”