Britain’s vapers will face major price increases under new Vaping Products Duty from later in 2026
Britain’s vapers are set to face a major price hike under a new government Vaping Products Duty (VPD) on all vaping liquids. The flat-rate levy of £2.20 per 10ml will apply whether a product contains nicotine or not and is due to come into effect in the autumn.
Once VAT is added, this will push up the price for each 10ml bottle of vape liquid by £2.64. Vape industry leaders say the cheapest products which start around 99p will go up a punishing 267% to £3.83. They have condemned the move as a tax grab that penalises people trying to give up tobacco.
HM Revenue & Customs said the duty is intended to “reduce the number of people taking up vaping, particularly non-smokers and young people, by reducing affordability”, while maintaining incentives for smokers to switch to less harmful alternatives.
An official policy paper estimates that around 5.1 million people who vape will be impacted, with heavy users carrying the largest cost burden. The government anticipates the measure will generate £135 million in 2026–27, rising to £565 million by 2030–31.
Officials emphasise that the flat rate is designed to simplify compliance for businesses and HMRC, and to reduce the risk of disputes over product classification based on nicotine content.
“Those who do not already vape or smoke should not start,” the government’s policy paper notes, reflecting advice from the Chief Medical Officer, who expects the duty to have a “significant positive effect on health outcomes.”
The government has confirmed that CBD vaping liquids intended to be vaporised in a vape device will also be subject to the new duty, at the same £2.20 per 10ml rate, as they fall under the definition of vaping products.
From April 2027, all vaping products will also require a Vaping Duty Stamp (VDS) to improve traceability and combat illicit trade. HMRC warns that failure to comply could result in civil or criminal penalties, consistent with other excise duties. The government stresses that the duty will “support broader public health objectives aimed at reducing youth access to illicit vaping products”.
John Dunne, Director General of the UK Vaping Industry Association (UKVIA), said: “The additional cost of £2.64 (including VAT) per 10mls of e-liquid is a kick in the teeth for former adult smokers who have switched to vaping to quit their habits. It will also be the highest rate in Europe.
“Some 3m adults are former smokers thanks to vaping, which is strongly evidenced as the most effective way to quit conventional cigarettes, saving the NHS millions of pounds in treating patients with smoking related conditions.”
He added: “It is a nonsensical move to put a severe punitive tax level on vaping when the category has done so much to reduce the number of adult smokers requiring medical attention by being a driving force in the decline of smoking rates to record low levels in recent years.”
Rachel Nixon, HMRC’s Director of Indirect Tax, said: “We are working closely with the vaping sector ahead of these changes. Businesses are encouraged to visit GOV.UK and search ‘prepare for vaping duty’ to access guidance and updates. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.”
