Chancellor Jeremy Hunt is expected to announce a new tax on vaping at next week’s budget to protect the public’s health.
This is because the government is concerned that the low cost of vapes makes them more accessible to young people and non-smokers.
It is believed that the vaping tax will be paid on imports and by manufacturers. It will also be levied on the liquid in vapes, meaning products with more nicotine will have a higher level of tax.
The proposed tax is modelled on 15 similar levies across Europe, with the European Commission planning to implement a minimum level vaping levy across the EU.
In addition, Hunt is expected to announce a one-off increase to the tobacco duty to ensure that vaping is the cheaper option.
Together, the two new measures are thought to raise over £500 million a year by 2028/29, according to treasury analysis.
Disposable vape ban
Sunak aims to both prevent children from taking up vaping and encourage adult smokers to switch to vapes. In a vaping consultation report from earlier this month, the government said: ‘However, we are mindful of the need to balance a price increase that deters young people vaping with ensuring that vaping remains a more affordable option than smoking, to encourage adult smokers to quit.’
This comes after the government confirmed that disposable vapes will be banned as part of the drive to protect children’s health. New powers to restrict packaging and the way e-cigarettes are displayed in stores were also announced.
Prime Minister Rishi Sunak said: ‘As any parent or teacher knows, one of the most worrying trends at the moment is the rise in vaping among children, and so we must act before it becomes endemic.’
The government ministers responsible for delivering ban hope to pass the legislation before the next election.
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