The UK government is likely to impose a 25% tax on vaping products for the first time when it releases its budget on March 6th. This would significantly increase prices to dissuade youth vaping, while offsetting lost revenue from eliminating other taxes.
Tax Could Increase Vape Prices 25%
Citing a government source, The Mirror first reported the proposed tax last Saturday. The newspaper said such a vape tax is "almost inevitable," despite not actually being finalized yet.
Responses to a public consultation ending in December will supposedly be considered first. Other potential measures were also proposed, like vape flavor restrictions, bans on disposable models, and regulating packaging imagery.
Research Shows Vape Taxes Increase Cigarette Use
Importantly, research proves that taxes on vapes increase cigarette sales and smoking rates. As economic substitutes, taxes or regulations disadvantageous to vaping comparatively help combustible tobacco. This includes raising underage smoking levels too.
So a UK vape tax could perversely undermine the government's own "smokefree generation" goal. Prime Minister Rishi Sunak wants to incrementally ban cigarette sales in England by raising the minimum purchase age annually.
Parliamentary Approval Needed
Passing any vape tax or the proposed smokefree law needs approval from Parliament first. Some Conservatives have already voiced opposition, but the rival Labour Party would likely provide necessary votes instead.
Around 50 countries worldwide now levy taxes on vaping products. Most tax e-liquid volume or wholesale costs. America has no federal vape tax, but 31 states and DC chose to implement their own.
Meet Nick Schager, the co-founder of our vaping website. With a solid foundation of over 10 years in the industry, Nick brings an unparalleled depth of knowledge, having an extensive understanding of more than 1000 vaping products.
