Millions of individuals who smoke or use vaping products are set to face increased costs later this year due to a double impact of price hikes. The primary change involves the introduction of a new tax on vaping goods, 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.
It is anticipated that a 10ml bottle currently priced at £3.99 could jump to £6.63 inclusive of VAT, as reported by vapeshop.co.uk. Larger refill bottles are expected to experience even more significant price surges. For instance, a larger 50ml bottle priced at £11.99 may potentially increase to £25.20 with VAT included. Additionally, tobacco products will also become pricier starting October 1, 2026, due to a planned one-time duty rise.
The tobacco duty will escalate based on the Retail Prices Index (RPI) measure of inflation, plus two percentage points, with an additional £2.20 per 100 cigarettes and £2.20 per 50g on all other tobacco items. Tobacco duty typically sees an annual increase following the autumn Budget. This development follows the approval of the Tobacco and Vapes Bill, which aims to prevent individuals currently aged 17 or younger from purchasing cigarettes.
Under the proposed legislation, retailers will be prohibited from selling tobacco, herbal smoking products, or cigarette papers to individuals born on or after January 1, 2009. The Bill must undergo parliamentary scrutiny, with both the House of Commons and the House of Lords needing to agree on the final wording for it to become law. Moreover, adults attempting to purchase vaping or nicotine products on behalf of minors will face penalties under the draft law.
Furthermore, ministers are poised to acquire new authority to regulate the flavors, ingredients, packaging appearance, size, texture, and shape of smoking products, including vapes. Health minister Baroness Merron emphasized the importance of safeguarding future generations from the perils of tobacco and nicotine addiction, citing smoking as a major avoidable cause of death, disability, and illness.
Jamie Strachan, the operations director at VPZ, a prominent vaping retailer with a nationwide presence, hailed the passage of the Tobacco and Vapes Bill as a significant milestone in UK public health policy. He stressed the necessity of responsible regulation to shield young people and endorsed measures upholding high retail standards while ensuring adult smokers can access safer alternatives to traditional tobacco products.
However, Strachan raised concerns about the proliferation of high-capacity disposable devices designed to bypass existing limits, warning that these could undermine consumer protections and responsible retail practices. He urged the government to develop stringent enforcement mechanisms and clear product standards as it formulates the detailed regulations to enforce the new legislation.