Tag: vape tax

  • Analysts: UK Vape Tax Good for Tobacco Stock

    Analysts: UK Vape Tax Good for Tobacco Stock

    Image: James Thew

    Citi analysts have identified the U.K. government’s new excise tax on vaping products as an encouraging development for BAT and Imperial Brands, reports Proactive.

    Chancellor Jeremy Hunt confirmed in his Spring Budget speech that vaping products would be subject to a new tax from October 2026. According to media reports, this move is designed to maintain a financial incentive for choosing vaping over smoking, complemented by a concurrent increase in tobacco duty.

    The taxation framework will be based on nicotine content, with a three-tiered system imposing charges ranging from £1 ($1.28) per 10 mL to £3 per 10 mL in addition to the current 20 percent VAT.

    This structured approach aims to regulate the vaping market further and aligns with the government’s health strategy by providing a less harmful alternative to traditional smoking.

    Citi’s short research note said: “Although [Wednesday’s] confirmation of the planned levy on vaping comes as little surprise, we believe that alongside the proposed ban on disposable vapes from April 25, the regulatory risk/reward is skewing to the upside for both BAT and Imperial.”

  • Canada Proposes Federal Vape Tax

    Canada Proposes Federal Vape Tax

    Photo: Roman R

    The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.

    The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.

    Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.

    Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.

    The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.