A new UK tax on vaping products has come into force, adding a duty of £2.20 for every 10ml of e-liquid sold. The measure applies whether or not the liquid contains nicotine and forms part of government efforts to reduce vaping among children and non-smokers while maintaining an incentive for smokers to move away from tobacco.
The changes also introduce a new system for tracing vaping products through the supply chain. Retailers and wholesalers will have six months to sell existing stock before all vaping products sold in the UK must carry a valid duty stamp from 1 April 2027. At the same time, tobacco duties have risen to preserve the price difference between cigarettes and vaping products.
New Duty Is Designed To Make Vaping Less Affordable for Young People
The Vaping Products Duty must be paid by manufacturers, importers and warehouse operators approved by HM Revenue and Customs. Businesses will decide whether to absorb the cost or pass it on to retailers and consumers, meaning some customers may not see an immediate increase in prices.
According to HMRC information reported by The Independent, the duty is set at £2.20 per 10ml of vaping liquid. Tobacco duty has also increased by £2.20 per 100 cigarettes or 50 grams of tobacco, alongside the existing tobacco duty escalator.
The government says the measures are intended to make vaping less affordable and less attractive to children and people who do not smoke. Health Minister Karin Smyth said vaping remained less harmful than smoking and could help adult smokers quit, but stressed that children and non-smokers should never vape.
The policy arrives amid continuing concern about vaping among younger people. According to a poll for Action on Smoking and Health cited by the BBC, almost one in five 11- to 17-year-olds in Britain have tried vaping.
A review by the Royal College of Paediatrics and Child Health examined about 81 studies involving children and young people. It found associations between vaping and wheezing, coughing, poor oral and dental health, poor sleep, mental health problems and eye symptoms.
The review also reported links with nicotine dependence and subsequent cigarette smoking. Its authors said vaping should not be treated as a harmless part of growing up, while noting that the longer-term effects remain less clear.
Duty Stamps Will Track Products and Support Action Against Illegal Trade
Alongside the tax, HMRC has introduced the Vaping Duty Stamps Scheme, designed to provide traceability across the supply chain. From 1 April 2027, every vaping product sold in the UK will be required to carry a valid stamp.
According to The Independent, the six-month grace period is intended to allow wholesalers and retailers to clear stock already in circulation. The government says the system should make it easier for enforcement authorities to distinguish legal products from illicit ones.
Financial Secretary to the Treasury James Murray said the measures would help remove illegal vapes from high streets and support retailers complying with the rules.
The vaping industry has criticised the scale of the duty. John Dunne, director general of the UK Vaping Industry Association, argued that higher prices could undermine vaping’s role as an alternative for adults trying to stop smoking.
Some retailers have also raised concerns about the effect on specialist vape shops. Others interviewed by the BBC said higher prices could prompt customers to cut back or quit, while some vapers said the tax would not change their behaviour.
Travellers entering Great Britain from 1 October may bring up to 50ml of vape liquid for personal use without paying duty or tax. Amounts above that limit must be declared and the relevant duty paid.
