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Vape Tax: What you need to know!

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Vape Tax: What you need to know!

Understanding the Proposed Vape Tax in the UK: What Vape Stores Need to Know

Concerns about the health impacts of vaping, especially among young people and non-smokers, have prompted the UK government to propose a vaping products duty. This proposed tax aims to regulate the vaping market, discourage nicotine addiction, and generate revenue for public services. Here’s what vape stores need to know about the proposed vape tax:

1. Objectives of the Vape Tax:

  • The main objectives of the proposed duty include reducing the number of non-smokers and young people who vape, encouraging consumers to choose lower nicotine or nicotine-free products, and raising revenue for public services like the NHS.
  • The tax aims to ensure that vaping remains a less attractive option compared to smoking traditional cigarettes.

2. Structure of the Duty:

  • The vaping products duty will be an excise duty, charged on vaping liquids at the point of manufacture or importation.
  • It will be a progressive tax based on the nicotine strength of the liquid, with higher taxes applied to products containing more nicotine per millilitre.
  • The duty will have three tiers:
    • Tier 1: £1.00 per 10ml for nicotine-free liquids.
    • Tier 2: £2.00 per 10ml on liquids containing the same or less nicotine than an average cigarette.
    • Tier 3: £3.00 per 10ml on liquids containing more nicotine than an average cigarette (11mg or more).

3. Impact on Pricing:

  • The proposed duty structure will increase the price of vaping products, particularly those with higher nicotine content, making them less affordable and accessible.
  • The price increase is expected to encourage consumers to reduce their nicotine intake or switch to lower nicotine options.

4. Comparison with Tobacco Duties:

  • To prevent the tax from making smoking more attractive, there will be a one-off increase in tobacco duties.
  • Tobacco duties will be increased by £2 per 100 cigarettes or 50 grams of tobacco, maintaining the financial incentive to choose vaping over smoking.

5. Ensuring Accessibility for Smokers Trying to Quit:

  • Despite the tax, vaping products will continue to play a role in helping smokers quit cigarettes.
  • The duty burden on vaping products will remain considerably lower than that on traditional cigarettes.


The proposed vape tax in the UK aims to regulate the vaping market, discourage nicotine addiction, and generate revenue for public services. Vape stores need to understand the structure and objectives of the duty to prepare for its implementation in October 2026. By aligning with these regulations, vape stores can continue to serve their customers while contributing to public health initiatives and supporting a smoke-free generation.

Stay informed, stay compliant, and continue to advocate for the responsible use of vaping products.

[Note: This blog post is based on the official Chapter 3 document on Vaping Products Duty released by the UK government. It provides an overview of the proposed tax and its implications for vape stores and consumers.] https://assets.publishing.service.gov.uk/media/65e80ba108eef600115a5621/Vaping_Products_Duty_Consultation.pdf