New taxes on vaping products, announced in 2024, are set to increase the cost of e-liquids, adding £2.20 to every 10ml. This change, alongside a £2.20 increase in tobacco duty per 100 cigarettes from October 1, is expected to generate substantial revenue for the government.
The Treasury anticipates these duties will raise an additional £550 million annually by 2030-31. For individuals who vape regularly, this could translate to significant personal costs. One vaper estimates paying nearly £150 more in tax annually, bringing their total vaping expenses to around £700.
Critics argue that the government's approach creates a disincentive for smokers to transition away from traditional cigarettes. Historically, public health bodies and government messaging have promoted vaping as a less harmful alternative to smoking. The new taxation policy, however, narrows the financial gap between vaping and smoking, potentially prompting some individuals to revert to smoking cigarettes or seek out untaxed alternatives.
The tax applies to e-liquids regardless of nicotine content, meaning even nicotine-free options will be subject to the increased duty. Industry experts suggest that the Treasury may have underestimated the volume of e-liquid consumed by vapers, with real-world usage potentially double the estimated amount.
Concerns have also been raised about the potential rise of a black market for vaping products, similar to trends observed with other heavily taxed goods. Individuals may turn to illegal imports or counterfeit products to avoid the higher costs.
While acknowledging the need for government revenue and the potential benefit of discouraging youth uptake, some vapers feel conflicted by a policy that taxes a product they were previously encouraged to use as a smoking cessation tool. The financial burden imposed by the new taxes, they argue, may not effectively drive cessation but could instead lead to a return to smoking or engagement with unregulated products.