Millions of individuals who smoke or vape are set to face significant price hikes in the near future. The primary change on the horizon is the introduction of a new tax on vaping products, scheduled to take effect from October 1, 2026. This new Vaping Products Duty will impose a fixed rate of £2.20 per 10ml on all e-liquids, irrespective of their nicotine content.
Projections indicate that a 10ml e-liquid bottle currently priced at £3.99 could potentially soar to £6.63 with VAT included. Larger refill containers are expected to experience even steeper price escalations. For instance, a 50ml bottle currently priced at £11.99 might surge to £25.20 inclusive of VAT. Additionally, tobacco products will also see a rise in prices from October 1, 2026, due to a planned one-time duty increase.
The tobacco duty will climb based on the Retail Prices Index (RPI) inflation measure, plus an additional two percentage points, with an extra £2.20 levied per 100 cigarettes and £2.20 per 50g on other tobacco items.
The annual rise in tobacco duty typically occurs post the autumn Budget announcement. This development comes subsequent to the approval of the Tobacco and Vapes Bill, which aims to prohibit individuals under the age of 18 from purchasing cigarettes. Under this proposed legislation, retailers will be prohibited from selling tobacco or herbal smoking products, as well as cigarette papers, to individuals born on or after January 1, 2009.
The Bill must undergo parliamentary procedures, with both the House of Commons and the House of Lords needing to agree on the final wording before it can become law. As part of the draft legislation, adults attempting to purchase vaping or nicotine products on behalf of minors will face fines.
Furthermore, ministers are poised to acquire new authority to regulate the flavors and substances in smoking products, including vapes, in addition to overseeing the appearance, size, texture, and shape of packaging.
Health minister Baroness Merron emphasized the importance of the legislation in protecting future generations from the harms of tobacco and nicotine addiction. Meanwhile, Jamie Strachan, operations director at VPZ, a prominent vaping retailer, highlighted the significance of responsible regulation to safeguard young people and maintain high retail standards.
As the government progresses with formulating detailed regulations to implement the legislation, robust enforcement and clear product standards are deemed crucial to the law’s effectiveness.
