Business

Vape prices to rise as new tax takes effect

BBC Business · 2026-09-30

AI SUMMARY

• What happened: A new tax on vaping products, the Vaping Product Duty, has been implemented, increasing prices by £2.20 per 10ml of e-liquid to discourage youth vaping. • Why it matters: The government aims to reduce the appeal of vaping among children and young people amid growing health concerns, while the vaping industry argues that affordable options help smokers quit. • What to watch next: The impact of the tax on vaping habits, potential changes in consumer behavior, and the government's ongoing efforts to combat illegal trade in vaping products.

Image source, Getty ImagesImage caption, The government is trying to make vaping more expensive and less appealing to young peopleByEmer MoreauBusiness reporterPublished12 minutes agoThe price of vapes is set to rise as a new tax comes into effect, with the aim of making vaping less attractive to children and young people.The Vaping Product Duty will be imposed at a rate of £2.20 per 10ml of e-liquid. However, many customers will not see a jump in prices immediately, as sellers have six months to sell old stock at the pre-duty price.The government wants to reduce the appeal of vapes by making them more expensive, as more evidence of its adverse effect on health comes out, particularly on children and young people.The vaping industry has lobbied against the new tax, saying that affordable vapes help people to quit smoking.The duty will apply to all vaping products regardless of whether they contain nicotine.Tobacco rates were also raised on Thursday, by £2.20 per 100 cigarettes or 50g of tobacco. HMRC said this maintains the financial incentive for smokers to switch to vaping.Stocking up v cutting downThe BBC spoke to vapers in Reading who had mixed views on whether the new tax would encourage people to quit.Mackenzie Bird, 19, has been a regular vaper for three years. She said she was "fine" with the duty and it wouldn't stop her from vaping.Image caption, Mackenzie Bird said the tax wouldn't stop her from vaping"I don't know how many people it'll actually deter," she said."I'll probably just stock up."However, Cara Lewis-Rimes and Dylan Killner said they might reconsider the habit in light of higher prices.Cara said she thinks the changes will force vapers to cut down because of the cost of living.Image caption, Cara and Dylan think the tax will prompt vapers to cut backDylan said he might be inclined to quit altogether."I don't think it's doing me any favours... the health factor around it as well is not great."Fighting illegal tradeHMRC is also launching a stamp for vaping products which are traceable throughout the supply chain.All vapes sold in the UK must carry this stamp from April.The new tax is also an effort to combat illicit trade, which is a growing problem on UK high streets. Last month, the prime minister announced new powers for councils that will address the decline of the high street, including the amount of vape shops.Changes to planning law in England mean every new shop selling e-cigarettes, or vapes, would need to apply to their local council for permission to open.Health Minister Karin Smyth said: "These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets."James Murray, the Financial Secretary to the Treasury, said the government was "backing all those retailers who play by the rules".Image caption, Vape shop staff like Jordan have seen customers stocking up ahead of the tax coming inBut Jordan Apap, a sales assistant in Berkshire Vapers, said the new tax would "put a lot of strain on legitimate vape shops" that provide more specialist advice and services than convenience stores and phone shops that sell vapes."There is a real and genuine risk that we will cease to exist within a year or two," he said.Vaping rates for schoolchildren appear to drop - is it falling out of favour?Published22 SeptemberPolice raid barbers and vape shops suspected of being fronts for crime gangsPublished10 April 2025John Dunne, the director general of the UK Vaping Industry Association, said: "This is nothing short of a tax on public health."He said vapes had helped "millions of adults cut down on or stop smoking"."Protecting young people is essential. But that means stronger enforcement against illegal and rogue traders, not making legal vaping more expensive for adults trying to stay away from cigarettes."Experts say vaping is much safer than smoking, but it is not risk free and the long-term effects are less clear.A recent review of vaping studies found that it had an association with problems in children and young people including wheezing and coughing, poor oral and dental health, poor sleep, mental health problems and eye symptoms.The NHS has said that children and non-smokers should never vape.Additional reporting by Neranjana ElapathaRelated topicsVapingSmokingHM Revenue & Customs

Source: BBC Business
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