A new tax on vaping liquids has come into force across the UK, with the Government saying the measures are designed to make vaping less affordable and tackle illicit and underage sales.
The new Vaping Products Duty came into effect on Thursday, October 1, applying to vaping liquids manufactured in or imported into the UK.
The duty is set at £2.20 for every 10ml of vaping liquid – equivalent to £220 per litre.
The charge applies to vaping liquids whether they contain nicotine or not. The duty is paid by approved manufacturers, importers and warehousekeepers, although businesses will decide whether to pass the additional cost on to retailers and ultimately consumers.
What does it mean for vapers?
The immediate impact on customers will depend on whether manufacturers and retailers pass the new duty on through higher prices.
The Government says the measure is intended to reduce the affordability and appeal of vaping, particularly among young people and non-smokers.
At the same time, ministers have stressed that vaping remains less harmful than smoking and can help adult smokers quit.
Health minister Karin Smyth said the Government's public health advice remains that children and non-smokers should not vape, while describing the new measures as part of efforts to tackle youth vaping.
New duty stamps
Vaping products released onto the UK market from October 1 must now carry a vaping duty stamp, unless they are being moved under duty-suspension arrangements.
The stamps are designed to help distinguish legitimate products from illicit ones and provide greater traceability through the supply chain. Digital versions will eventually allow businesses, enforcement agencies and consumers to check the authenticity of products.
There is, however, a transition period.
Retailers can continue selling eligible unstamped stock they already held before the new duty came into force until March 31, 2027.
From April 1, 2027, all vaping products sold or supplied in the UK must carry a valid vaping duty stamp.
From January 1, 2027, newly manufactured or imported products will need to use the digital version of the duty stamp.
New rules for travellers
The changes also affect people bringing vaping liquids into the UK.
Travellers arriving in Great Britain can bring up to 50ml of vaping liquid for personal use without paying duty or tax.
Amounts above that limit must be declared, with duty payable on the full quantity.
Separate rules apply to travellers entering Northern Ireland, depending on whether they are arriving from Great Britain, the EU or elsewhere.
Government targets illicit vape trade
The Government says the new stamp system is also intended to make it easier for enforcement agencies to identify illicit products.
James Murray, Financial Secretary to the Treasury, said the measures would help get illicit vapes off high streets while supporting legitimate retailers.
The Government is also committing £30 million of new funding each year until 2028-29 for Trading Standards, Border Force and HM Revenue and Customs to tackle illicit and underage sales of tobacco and vapes.
Tobacco duty also rises
The changes come alongside an increase in tobacco duty.
From October 1, tobacco duty has been increased by an additional £2.20 per 100 cigarettes or 50g of other tobacco products, on top of the standard tobacco duty escalator.
The Government says this is intended to maintain the financial incentive for smokers to move from tobacco to vaping.
What happens next?
The Government is also considering further restrictions on vaping products.
A Department of Health and Social Care consultation on reducing the appeal of vapes to children and young people includes proposals covering plain packaging, flavour descriptions and the display of vapes in shops.
The consultation is due to close on October 2, 2026.
The Government estimates that the new Vaping Products Duty could raise more than £550 million a year by 2030-31.
For retailers and consumers, the coming months will therefore be a transition period as the new duty and packaging requirements become increasingly visible on products sold across the UK.