The UK’s new Vaping Products Duty took effect today (Oct. 1), imposing an excise duty of £2.20 per 10ml of vaping liquid, including nicotine-free products, while a new vaping duty-stamp scheme is being phased in to improve supply-chain traceability and help combat illicit trade. Manufacturers, importers, and warehousekeepers are responsible for the duty, with existing unstamped inventory eligible to be sold through March 31, 2027. From April 1, 2027, all vaping products sold in the UK must carry a valid duty stamp. Retailers caught selling unstamped products after the grace period could face significant penalties. HMRC can seize non-compliant stock and issue fines of up to £10,000, with penalties increasing for repeat offences. In the most serious cases, businesses could also face criminal investigation, an unlimited fine or imprisonment.
The government said the measures are intended to reduce vaping’s affordability and appeal, particularly among young people and nonsmokers, while tobacco duty is also increasing by an additional £2.20 per 100 cigarettes or 50 grams of tobacco on top of the existing duty escalator.
The UK Vaping Industry Association (UKVIA) criticized the new duty, with Director General John Dunne calling it a public-health tax and arguing that higher prices could push some consumers toward smoking or illicit products. UKVIA cited its survey of nearly 3,500 adult vapers, which it said found about half would consider returning to smoking or the black market following the duty. Separately, Haypp’s Head of External Affairs UK and Scientific Affairs, Dr. Marina Murphy, said retailers face additional compliance requirements, including managing unstamped inventory, maintaining records, and ensuring new stock carries the required stamps.
The government said the duty is expected to raise more than £550 million annually by 2030-31 and is providing £30 million a year through 2028-29 for Trading Standards, Border Force, and HMRC to tackle illicit and underage sales of tobacco and vapes.
