Vapers across the country could find themselves paying considerably more for e-liquids when a new tax on vaping products takes effect this autumn.
The Vaping Products Duty, set to launch later this year, will impose a charge of £2.20 for every 10ml of vaping liquid sold, applying equally to products with or without nicotine.
HM Revenue and Customs (HMRC) has called on manufacturers, importers and other businesses in the supply chain to complete their registration before July ends.
Retailers must also prepare to meet requirements under a new duty stamp scheme that will accompany the tax’s introduction.
Andy Wood, a tax expert at Tax Barrister UK, has cautioned that the financial burden is unlikely to rest solely with businesses despite them holding the legal obligation to pay the levy.
He said: “Although the legal responsibility for paying the new Vaping Products Duty sits with businesses, it would be surprising if a significant proportion of that additional cost wasn’t ultimately reflected in retail prices.”
Mr Wood noted that regular users who frequently purchase e-liquids may find even modest per-product increases accumulating into meaningful annual expenses.
The tax expert added: “For regular vapers, even relatively small increases on individual products can add up over the course of a year, particularly for those who purchase e-liquids frequently.”
Mr Wood highlighted that shoppers may not anticipate the variation in pricing they could encounter once the duty begins.
He shared: “Businesses will each decide how they absorb or pass on these additional costs.
“Some may choose to absorb part of the increase to remain competitive, while others could pass on most, or all, of the additional tax to customers.”
The tax expert observed that excise duties have long been applied to tobacco and alcohol as tools for both revenue generation and shaping purchasing habits, with the vaping levy following this established approach.
Mr Wood also pointed out that consumers should be aware such levies tend to remain in place permanently once established.
He said: “While public health objectives form part of the rationale, consumers should also recognise that these types of taxes often become a permanent feature once introduced.”
The Government has framed the duty as part of broader efforts to curb vaping uptake, particularly among younger people.
HMRC has issued warnings that businesses producing or handling vaping products without proper approvals from October 1 risk facing civil or criminal sanctions.
