Millions of individuals who smoke or use vaping devices will soon face higher costs due to upcoming price hikes. A significant change on the horizon is the introduction of a new tax specifically targeting vaping products, scheduled to take effect on October 1, 2026. The newly imposed Vaping Products Duty will entail a fixed fee of £2.20 per 10ml added to the price of all e-liquids, irrespective of their nicotine concentration.
Forecasts suggest that a 10ml e-liquid bottle currently priced at £3.99 could surge to £6.63 inclusive of VAT, as projected by vapeshop.co.uk. Larger refill containers are expected to experience even more substantial price escalations. For instance, a 50ml bottle currently priced at £11.99 might soar to £25.20 after factoring in VAT.
In addition to the vaping tax, tobacco products are also set to become pricier effective October 1, 2026, due to a planned one-time duty increase. The tobacco duty will be raised in accordance with the Retail Prices Index (RPI) inflation measure, plus an additional two percentage points, along with an extra charge of £2.20 per 100 cigarettes and £2.20 per 50g for other tobacco products.
Tobacco duty typically sees annual increments following the autumn Budget. This development follows the recent backing of the Tobacco and Vapes Bill by peers, which aims to prohibit individuals currently under 18 from purchasing cigarettes. As per the proposed legislation, retailers will be prohibited from selling tobacco products, herbal smoking items, or cigarette papers to individuals born after January 1, 2009.
The Bill is pending approval by both the Commons and Lords before becoming law. A provision within the legislation also introduces fines for adults attempting to purchase vaping or nicotine products on behalf of minors. Furthermore, ministers are expected to acquire enhanced authority to regulate the content and packaging of smoking products, including vapes, encompassing flavors, ingredients, and packaging aesthetics.
Health minister Baroness Merron emphasized the importance of the legislation in combating smoking-related health issues, stating, “Smoking is the primary preventable cause of death, disability, and illness, claiming approximately 80,000 lives annually. This legislation aims to safeguard future generations from the harms of tobacco and nicotine addiction.”
Jamie Strachan, operations director at VPZ, a prominent vaping retailer operating nationwide, hailed the passage of the Tobacco and Vapes Bill as a pivotal moment in public health policy for the UK. He emphasized the necessity of responsible regulation to protect youth and advocated for stringent enforcement and clear product standards as crucial elements in implementing the legislation effectively.