Millions of individuals who smoke and use vaping devices are facing impending price hikes in the near future. The significant change on the horizon is the introduction of a new tax specifically targeting vaping products. This Vaping Products Duty is scheduled to take effect starting October 1, 2026, adding a fixed rate of £2.20 per 10ml to the price of all e-liquids, irrespective of their nicotine content.
Projections indicate that a 10ml e-liquid bottle currently priced at £3.99 could surge to £6.63 including VAT, as reported by vapeshop.co.uk. Larger refill bottles are expected to experience even steeper price escalations. For instance, a 50ml bottle currently priced at £11.99 may soar to £25.20 with VAT included. Additionally, tobacco products will also become pricier from the same date due to a planned one-time duty increase.
The tobacco duty increment will align with the Retail Prices Index (RPI) inflation measure plus an additional two percentage points, with an extra £2.20 levied per 100 cigarettes and £2.20 per 50g for other tobacco items. This hike in tobacco duty typically occurs annually following the autumn Budget announcement. The impending changes come subsequent to the backing of the Tobacco and Vapes Bill by peers, which aims to prevent individuals aged 17 or below from purchasing cigarettes in the future.
As part of this proposed legislation, retailers will be prohibited from selling tobacco, herbal smoking products, or cigarette papers to individuals born on or after January 1, 2009. The Bill must undergo approval from both the Commons and Lords before becoming law. Furthermore, adults attempting to procure vaping or nicotine products for minors may face fines under this draft law.
Ministers are anticipated to gain increased authority to regulate the flavors, ingredients, and packaging specifications of smoking products, including vapes. Health minister Baroness Merron emphasized the importance of such measures in combating the adverse effects of smoking and nicotine addiction, particularly in protecting future generations.
Jamie Strachan, the operations director at VPZ, a prominent vaping retailer spanning over 190 locations nationwide, highlighted the significance of responsible regulation to safeguard young individuals and maintain high retail standards. Strachan stressed the necessity for strong enforcement and clear product standards as the government finalizes the detailed regulations to implement the new legislation.
