Vapers Face New Taxes Amidst Shifting Public Health Guidance

A new tax on vaping products, announced in 2024, has come into effect in Britain, adding additional costs for the nation's estimated 5.5 million vapers. The levy imposes an extra £2.20 for every 10ml of e-liquid and a £2.20 increase in tobacco duty for every 100 cigarettes, starting October 1.

Angharad Carrick, a vaper and writer for the Daily Mail, shared her personal experience, detailing how she switched from smoking cigarettes to vaping over four years ago, believing it to be a healthier alternative promoted by public health bodies and government messaging. She now faces an estimated personal tax increase of nearly £150 annually, bringing her total vaping expenditure to around £700 per year.

Carrick argues that the tax effectively penalizes individuals for following official advice to transition away from smoking. She points out that the incentive to switch from smoking to vaping is diminished by the increased cost, potentially leading some back to traditional cigarettes. The tax applies to e-liquids regardless of nicotine content, limiting options even for those attempting to reduce their nicotine intake.

Industry experts, including Dan Marchant, director of Vape Club, suggest that the Treasury may have underestimated the actual consumption of e-liquid by vapers. A survey by Vape Club and UKVIA indicates that real-world usage is nearly double the government's estimated 617ml per year. Marchant stated, "You can't set a fair tax rate on a made-up number."

The introduction of this tax follows a proposal by the previous Conservative government, which also initiated a consultation on similar changes. The Treasury anticipates the duty will generate an additional £550 million annually by the 2030-31 fiscal year.

Concerns have also been raised about the potential rise of a black market for vaping products, similar to what has been observed with other heavily taxed items. Carrick suggests that committed vapers might turn to illegal imports or counterfeit goods rather than accept the higher costs.

While acknowledging the government's need for revenue and the potential benefit of deterring young people from starting vaping, Carrick expresses discomfort with the mixed messaging. She stated, "I don't want the Government to subsidise my addiction, but it should think about what happens to people's behaviour when you tax them without a realistic alternative."

The ban on disposable vapes, implemented in June, has not prompted Carrick to quit, and she questions whether making vaping significantly more expensive will lead to widespread cessation, suggesting it might instead encourage a return to smoking or the purchase of unregulated products.