The Spring Budget of 2024, delivered by Chancellor Jeremy Hunt, confirmed the introduction of an excise duty on vaping products starting in October 2026 (Gov.UK). This new tax is part of a broader effort to discourage non-smokers, particularly young people, from taking up vaping while maintaining a financial incentive for current smokers to switch to vaping as a less harmful alternative. Additionally, there will be a one-off increase in tobacco duty to support this initiative (CityAM).
The government has introduced the Tobacco and Vapes Bill, which includes measures aimed at reducing the appeal and availability of vaping products to young children. This bill proposes regulating the flavours, packaging, and sales of vaping products and making it an offence to sell non-nicotine vaping products to under-18s (GOV.UK).
These changes are part of a comprehensive strategy to create a smoke-free generation and address the rising use of vaping among young people. The new vaping tax, along with tighter regulations, aims to reduce the harm associated with underage vaping and ensure that vaping remains a safer alternative for those trying to quit smoking (GOV.UK).
The tax will be levied on e-liquids, with higher nicotine strengths incurring higher rates. This move aims to maintain a financial incentive for smokers to switch to vaping while making it less appealing and accessible to children.
Why the Change?
The primary reasons for the new tax are twofold:
1. Public Health Concerns: There has been a significant rise in vaping among young people in the UK. The government aims to curb this trend by making vaping products less attractive and accessible to minors. By imposing a higher cost on these products, it is hoped that fewer young people will be tempted to start vaping.
2. Revenue Generation: The new tax is expected to raise substantial funds, approximately £445 million by 2028-29. This revenue will help balance the books following a reduction in National Insurance, among other fiscal adjustments (CityAM).
Additional Regulatory Measures
Alongside the introduction of the vaping tax, the government has proposed several regulatory measures under the Tobacco and Vapes Bill. These measures include:
1. Flavour and Packaging Regulations: Ministers will have the power to regulate the flavours and packaging of vaping products to reduce their appeal to young people.
2. Sales Restrictions: It will become an offence to sell non-nicotine vaping products to under-18s. This will mostly restrict the availability of E-Liquids and disposables to adults only, aligning the law with existing restrictions on nicotine-containing products.
3. Enforcement of Underage Sales: Enhanced enforcement powers will allow authorities to issue fixed penalty notices for underage sales, with escalating penalties for repeat offenders (GOV.UK).
As the government moves forward with these proposals we at vapebrothers.co.uk will endeavour to keep our customers informed and adapt to the changing landscape.