"The measure, known as the Vaping Products Duty (VPD), will apply to vaping liquids containing nicotine and glycerine or glycol, or liquids intended to be vaporised, unless classified as medical or tobacco products. The duty will be charged at a flat rate of £2.20 per 10 millilitres of liquid, regardless of nicotine strength."
"The government says the policy is intended to reduce the affordability and appeal of vaping products, particularly among young people and non-smokers, while preserving incentives for smokers to move to less harmful alternatives. A flat-rate structure was adopted following consultation in 2024, replacing an earlier proposal for tiered rates based on nicotine strength."
"According to Budget 2025 costings certified by the Office for Budget Responsibility, the measure is projected to raise £2.4 billion in 2025-26. The government has confirmed that tobacco duties will rise by a commensurate amount when VPD is introduced to maintain the financial incentive for smokers to switch to vaping."
The UK government will implement the Vaping Products Duty (VPD) from 1 October 2026 through Finance Bill 2025-26, marking the country's first dedicated excise tax on vaping products. The flat-rate duty of £2.20 per 10 millilitres applies to nicotine-containing vaping liquids with glycerine or glycol, excluding medical and tobacco products. Registration for manufacturers and importers opens 1 April 2026. The measure is projected to raise £2.4 billion annually according to Office for Budget Responsibility costings, with an initial implementation cost of £50 million. Tobacco duties will increase proportionally to maintain financial incentives for smokers to switch to vaping. The flat-rate structure was chosen following 2024 consultation to align with international practice and simplify business compliance and HMRC enforcement.
Read at London Business News | Londonlovesbusiness.com
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