Vaping Product Prices to Increase as UK Government Implements New Excise Duty

A new excise duty on vaping products, designed to make them less affordable, will take effect in the UK from October 2026. The move is expected to increase prices for consumers, with the Treasury stating the measure will discourage non-smokers and young people from taking up vaping.

Tax Structure and Market Impact

The new duty will apply to the liquid in vapes, with varying rates depending on nicotine content. Products containing 10mg of nicotine per ml will incur a charge of £2 per 10ml, while those with 20mg per ml will see a £3 per 10ml levy. Nicotine-free products will also be taxed at £1 per 10ml. This initiative follows the government's recent ban on disposable vapes, signalling a broader strategy to curtail vaping prevalence.

Retailers will be granted an additional year, until October 2027, to sell existing stock purchased before the tax implementation. The vaping industry has expressed concerns that higher prices could inadvertently bolster the illicit trade in unregulated products. A public consultation on the specific mechanisms of the new duty and a separate one-off tobacco levy will conclude on 29 May.

Chancellor of the Exchequer Jeremy Hunt announced the new duty as part of the Spring Budget, alongside an additional one-off increase in tobacco duty. The government projects these measures will generate an additional £500 million in revenue by 2028-29, earmarked to support public services.