A new tax affecting millions of people comes into force in October (Image: Getty)
A new tax affecting millions of vapers has come into force today in an effort to stop young people and non-smokers picking up the habit. Vaping products duty will be charged at £2.20 per 10ml of vaping liquid as of today, whether it contains nicotine or not, and will be paid by manufacturers, importers and warehouse keepers approved by HM Revenue and Customs (HMRC).
These operators will decide whether to pass the duty cost onto retailers and consumers. An estimated 5.5million adults in the UK vape, equivalent to 10%, according to Action on Smoking and Health (ASH) Smokefree GB survey data, though the real number is likely to be higher, as young people are not accounted for.
Single-use disposable vapes are now illegal for UK businesses to sell, supply, or stock (Image: Getty)
Health bosses have increased tobacco duty rates too, so that current tobacco smokers still have an incentive to switch to vaping, at an increase of £2.20 per 100 cigarettes or 50 grams of tobacco, in addition to the standard tobacco duty escalator.
Health minister Karin Smyth said: “Our public health advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.
“These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets.”
Arrivals into Great Britain will also be limited to bring 50ml of vaping liquid for personal use without paying duty and tax, in new travellers’ allowances introduced today. Amounts above this must be declared and duty paid on the full quantity.
HMRC has also launched the Vaping Duty Stamps Scheme, which it hopes will allow products to be traced through the supply chain to protect consumers and help the high street in its fight against illicit trade.
A six-month grace period will give wholesalers and retailers the chance to sell existing stock before all vaping products sold in the UK must carry a valid vaping duty stamp from April 1.
Tobacco duty rates have also increased (Image: Getty)
‘Public health time bomb’
Among adults who currently vape, 60% used to smoke but have now given up, according to Action on Smoking and Health (ASH) Smokefree GB survey data.
However, UK Vaping Industry Association director general John Dunne said this new duty on vapes was a “public health time bomb”, claiming that it may encourage people to pick up smoking.
He said while there is “absolutely no debate that we need to prevent young people from accessing vaping products”, the Government also had a duty to “protect one of the most effective tools” to adults attempting to quit smoking.
“The Government says the duty will help reduce the appeal of vaping to young people while preserving the financial incentive for smokers to switch, with the money raised also intended to support the NHS. But if the result is more adults returning to smoking and a greater burden on the health service from smoking-related illness, that is completely at odds with what this policy is trying to achieve.”
James Murray, Financial Secretary to the Treasury and Paymaster General, said the measures would help get illicit vapes off high streets.
“We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t,” he said.
