Tax could deter consumers from vapes, warns industry
VAPING industry experts have warned of the negative impacts that could come from a tax rise in vaping and e-cigarette products.
Following news that Chancellor of the Exchequer Rachel Reeves is considering raising the tax of vape products in the upcoming Autumn Budget statement, industry members have warned it could see a reduction in the number of smokers turning to vaping products.
Liam Humberstone, technical director at Totally Wicked, said: “A proposal for the taxation of vape products was announced in the Spring Budget 2024.
“The tax, due to be applied to vape products from October 2026, is proposed to be applied to e-liquids at varying rates depending on nicotine content.
“Zero nicotine e-liquids, e-liquids containing nicotine at less than 11mg/ml, and 11mg/ml or higher will be taxed at £1, £2 and £3 per 10ml respectively.
“This will mean an increase in the retail price of £2.90 for a typical four-in-one product, and as much as £4.30 for some auto-fill ‘extended-use’ products.”
Humberstone reckons that a rise on these taxes could have a negative impact for consumers who are looking to make the switch from smoking to vaping, and has warned the UK government against making such a move during the budget, which is set to be revealed on 30 October.
A new tax on vaping products set to come into effect in 2026 was announced by the previous Westminster government during the Spring Budget this year. The then chancellor, Jeremy Hunt, claimed the new tax would help deter non-smokers from taking up vaping devices at the time.
Humberstone said: “The proposal to introduce a tax on vaping products has met with mixed response from independent public health stakeholders, as well as the vaping industry.
“There does seem to be a general recognition that the potential for unintended negative consequences from this taxation is vast, and includes a significant risk that large numbers of vapers may return to much more harmful smoking.
“As we move forward, the focus must remain on balancing the benefits of vaping as a reduced-risk alternative for smokers with the necessity of minimising its environmental consequences.”
