A new excise duty on vaping products has come into force in the UK today aimed at reducing the affordability and appeal of vaping, especially to young people and non-smokers.
Vaping Products Duty will be charged at £2.20 per 10ml of vaping liquid and will be paid by manufacturers, importers and warehousekeepers approved by HM Revenue and Customs (HMRC). It will then be a commercial decision whether the duty cost is passed on to retailers and consumers.
HMRC has also launched the Vaping Duty Stamps Scheme, which will provide digital traceability throughout the supply chain, enhancing consumer protection, and helping the high street by strengthening the fight against illicit trade.
It will also support the government’s commitment to back legitimate businesses, crack down on rogue operators and create fairer, safer high streets.
To support businesses, HMRC has introduced a six-month grace period meaning wholesalers and retailers can sell any existing eligible unstamped, non-duty liable, stock until 31 March 2027.
Tobacco duty rates have also increase to maintain the financial incentive for current tobacco smokers to switch to vaping. This is a one-off (pro-rata) increase of £2.20 per 100 cigarettes or per 50 grams of tobacco, in addition to the standard tobacco duty escalator.
James Murray, Financial Secretary to the Treasury and Paymaster General, said: "Our new measures will help get illicit vapes off high streets across the country. We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t."
Karin Smyth, Minister of State for Health, said: "Our public heath advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.
"These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets."
