A new tax on vaping products has come into force across the UK today, with vaping liquid now subject to excise duty of £2.20 for every 10ml.
The Vaping Products Duty took effect on 1 October 2026 and applies to vaping liquids manufactured in or imported into the United Kingdom, whether or not they contain nicotine.
The duty is paid by manufacturers, importers and approved warehousekeepers rather than being charged directly to customers at the till, although businesses may choose to reflect the additional cost in retail prices.
£2.20 duty for every 10ml
HM Revenue & Customs has confirmed that the new flat rate is £2.20 per 10ml of vaping liquid, equivalent to 22p per millilitre.
That means, for example, the excise duty liability on a 2ml vaping pod is 44p, while a 10ml bottle attracts £2.20 in duty.
The charge applies to both nicotine-containing and nicotine-free vaping liquids covered by the legislation.
New vaping duty stamps
A new Vaping Duty Stamps Scheme is also taking effect alongside the tax.
Products manufactured in or imported into the UK from 1 October for the UK market must carry a duty stamp before being released onto the market, subject to the relevant duty-suspension arrangements.
Retailers can continue selling qualifying unstamped stock manufactured or imported before 1 October until 31 March 2027. From 1 April 2027, vaping products sold or supplied in the UK must carry a valid duty stamp.
Transitional stamps can be affixed until the end of December, while stamps incorporating digital functionality become mandatory for newly manufactured or imported products from 1 January 2027.
Tobacco duty also increases
The introduction of the vaping duty coincides with another increase in tobacco duty.
From 1 October, tobacco duty rates increase in line with the existing Retail Prices Index plus two percentage point escalator, together with an additional one-off increase equivalent to £2.20 per 100 cigarettes or 50g of other tobacco products.
The Government says the additional tobacco increase is intended to preserve a price difference between smoking and vaping after the introduction of the new vaping duty.
Government says tax will tackle youth vaping
The Government says the new duty is intended to reduce the affordability and appeal of vaping to children and non-smokers while the duty-stamp regime is designed to make illicit products easier to identify and enforce against.
Health ministers continue to state that vaping is less harmful than smoking and can help adult smokers quit, while maintaining that children and non-smokers should not vape.
Those are the Government's stated policy objectives. The effect of the new tax on vaping rates, retail prices and the illicit market will depend on how consumers and businesses respond.