UK Vaping Products Duty to Raise £565 Million by 2030/31
The UK will introduce a Vaping Products Duty starting October 1, 2026, raising government revenue from £135 million to £565 million by 2030/31.Summary
The UK government has announced the implementation of a Vaping Products Duty (VPD) starting October 1, 2026, which will impose a new excise tax on all vaping liquids. The policy, confirmed in the Autumn Budget 2024, replaces a proposed tiered rate with a single rate of £2.20 per 10ml to simplify administration. Revenue forecasts indicate a significant increase in government income, projected to rise from £135 million in 2026/27 to £565 million by 2030/31. To facilitate personal use, passengers aged 17 or over arriving in Great Britain will be allowed a duty-free allowance of up to 50ml of vaping liquid. However, any amount exceeding this limit requires full declaration and payment of the duty. The policy also introduces a Vaping Duty Stamps Scheme, requiring businesses to apply for approval and attach stamps to retail packaging by October 1, 2026. The UK government aims to tax vaping products in a way that discourages non-smokers and young people from vaping while maintaining an incentive for adult smokers to switch from cigarettes. The policy also highlights differences in rules for Northern Ireland, which maintains separate allowances for travelers from the EU and non-EU countries. The long-term impact of the VPD will depend on factors such as price pass-through, consumer behavior, and cross-border compliance.
(Source：2Firsts)
