Millions of individuals who smoke or use vaping products will face a double blow of price hikes later this year. The major change is the introduction of a new tax on vaping items, scheduled to take effect from October 1, 2026. This new Vaping Products Duty will impose a fixed rate of £2.20 per 10ml on all e-liquids, irrespective of their nicotine content.
It is anticipated that a 10ml bottle currently priced at £3.99 could climb to £6.63 including VAT, as per vapeshop.co.uk. Larger refill containers are expected to experience even steeper increases. For instance, a 50ml bottle currently priced at £11.99 could surge to £25.20 including VAT. Additionally, tobacco products will become pricier from October 1, 2026, due to a planned one-off duty hike.
Tobacco duty will rise based on the Retail Prices Index (RPI) inflation measure, plus two percentage points, with an additional £2.20 per 100 cigarettes and £2.20 per 50g on other tobacco products. Tobacco duty typically increases annually following the autumn Budget. This development follows the approval of the Tobacco and Vapes Bill, which prohibits individuals aged 17 or below from purchasing cigarettes.
Under the proposed legislation, retailers will be forbidden from selling tobacco or herbal smoking products, or cigarette papers, to individuals born on or after January 1, 2009. The Bill must pass through Parliament, with both the Commons and Lords agreeing on the final wording for it to become law. As part of the new law, adults attempting to purchase vaping or nicotine products for minors will face fines.
Additionally, ministers are poised to gain new authority to regulate the flavors and components in smoking products, including vapes, as well as the appearance, size, texture, and shape of packaging. Health minister Baroness Merron emphasized the significance of this legislation in curbing the adverse impacts of smoking and nicotine addiction on public health.
Jamie Strachan, operations director at vaping retailer VPZ, expressed support for the Tobacco and Vapes Bill, highlighting the importance of responsible regulation to safeguard youth and maintain high retail standards while providing adult smokers access to safer alternatives to traditional tobacco products. However, concerns were raised about the availability of high-capacity disposable devices that could undermine consumer protections and responsible retail practices.
As the government refines the specific regulations to implement the legislation, stringent enforcement and clear product standards are deemed crucial for effective implementation.
