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A new tax on vaping has come into effect as part of targeted efforts to reduce the appeal of the habit to children and non-smokers.
The tax on vaping products is set at £2.20 per 10ml of vaping liquid, whether or not it contains nicotine, and must be paid by manufacturers, importers and warehouse operators approved by HM Revenue and Customs (HMRC).
It will be up to these operators to decide whether they pass on the cost of additional taxes to traders and consumers.
HMRC has also introduced the Vaping Duty Stamps Scheme, which it hopes will provide full traceability throughout the supply chain to strengthen consumer protection and support high streets against illegal trading.
A six-month grace period is provided to give wholesalers and retailers time to clear existing stock before every vaping product sold in the UK requires a valid vaping duty stamp from 1 April.
Tobacco duty rates have also been increased to preserve the financial incentive for existing smokers to switch to vaping, increasing by £2.20 per 100 cigarettes or 50 grams of tobacco alongside the standard tobacco duty indexation.
Updated allowances for travelers entering Britain from October 1 allow individuals to bring up to 50ml of e-liquid for personal consumption without incurring duties or taxes.
Any volume exceeded this limit must be declared and paid in full.
James Murray, Financial Secretary to the Treasury and Paymaster General, said: “Our new measures will help remove illicit vapes from high streets across the country.
“We support all retailers who follow the rules by making it easier for law enforcement to take action against those who do not.”
Health Minister Karin Smyth said: “Our public health advice is clear: although vaping is less harmful than tobacco and can help adult smokers quit, children and non-smokers should never vape.
“These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand in hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets.”
UK Vaping Industry Association chief executive John Dunne said: “There is absolutely no debate about the need to stop young people accessing vaping products, and it is not that the industry is categorically opposed to an increase in tariffs, but the rate of entry is nothing short of a public health time bomb.
“If we want to talk about duty, what about the government’s duty to protect one of the most effective tools available to adults trying to quit smoking?
“The government says this tax will help reduce the appeal of vaping to young people while preserving the financial incentive for smokers to switch, with the money raised also going to support the NHS.
“But if the result is that more adults return to smoking and a greater burden on the health service from smoking-related illnesses, that is completely at odds with the aim of this policy.”
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