Vaping is going to hit vapers’ wallets much harder with the UK’s new tax coming into effect. Photo credit: Vaper City, CC4.0.
UK chancellor Rachel Reeves announced the introduction of a new vaping products duty, effective October 1, 2026, set at a flat rate of £2.20 per 10ml of vaping liquid, differing from earlier proposals from the previous Conservative government which suggested that the tax rate would vary based on nicotine content.
The Labour government stated that the purpose of the new duty is to “discourage non-smokers and young people from taking up vaping."
Currently, vaping products are subject to a 20% VAT, but they do not have an additional tax like tobacco.
Alongside the new vape products tax, tobacco duty will be raised to encourage consumers to transition to vaping. In addition to the one-time increase, there will be a 10% rise in the tax on hand-rolled tobacco products.
However, Labour MP Mary Glindon criticized the upcoming increase, calling it “unsustainably high” and stating that it will “hurt working people” who rely on vaping. According to Glindon, the cost of vaping liquid could rise by 267% due to the Labour government’s proposals.
“There are still six million smokers who are yet to make the switch to vaping, to now put a tax on vaping will only serve to discourage these smokers to quit,” Glindon said during the budget debate in the Commons. “The vaping tax proposed by the chancellor is unsustainably high, at 22p per millilitre of vape liquid this will make the UK’s tax one of the highest in Europe.”
“Access to vaping liquids is not what is driving youth vaping, the government is already looking to address this through the Tobacco and Vapes Bill.”