UK to introduce £2.20 flat-rate Vaping Products Duty from October 2026
The UK will impose a flat £2.20 duty on vaping products per 10ml of liquid starting October 2026, aiming to discourage youth vaping while maintaining incentives for smokers to switch.Summary
The UK government will introduce a new excise tax on vaping products, known as the Vaping Products Duty (VPD), from October 1, 2026, as outlined in the Finance Bill 2025–26. This duty will be a flat rate of £2.20 per 10 millilitres of nicotine-containing vaping liquid, regardless of nicotine strength. The government projects this measure will generate significant revenue, rising from £135 million in 2026–27 to £565 million in 2030–31, though there will be an initial cost of £50 million for implementation.
The policy aims to reduce the appeal of vaping, particularly among young people and non-smokers, while still encouraging smokers to switch to vaping as a less harmful alternative. A flat-rate structure was chosen after consultation, simplifying compliance for businesses. The VPD will affect manufacturers, importers, retailers, and the estimated 4 million adult vapers in Britain.
The government acknowledges a potential risk of some vapers reverting to tobacco, but this is intended to be mitigated by simultaneous increases in tobacco duty. Administrative costs, including IT systems and staffing, are estimated at £140 million. The impact of the VPD will be monitored, particularly regarding youth uptake and the goal of a “Smoke-Free Generation.”
(Source：London Business News | Londonlovesbusiness.com)
