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IBVTA and the ACS Comment

The Independent British Vape Trade Association and the Association of Convenience Stores have added their opinions regarding the Chancellor’s proposed tax on vapes

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Jeremy Hunt MP, the Chancellor of the Exchequer, made his Budget statement last week where he announced his intention to tax eliquid from October 2026. The duty on liquids is claimed to discourage non-smokers from taking up vaping, but others say it will discourage switching and boost the black market. The Government has published a consultation on the design of the new tax, running for 12 weeks to the 29th of May.

The rates being proposed will be £1.00 per 10ml for nicotine free liquids, £2.00 per 10ml on liquids that contain 0.1-10.9 mg of nicotine per ml, and £3.00 per 10ml on liquids that contain 11mg of nicotine or more per ml. It is proposed that the duty will be chargeable at the point of their manufacture in, or importation into, the UK.

The Independent British Vape Trade Association Chair, Marcus Saxton, said: “The government has already proposed regulation that will ban single use products, which despite helping many adult smokers access vaping, have via irresponsible retailers been disproportionately accessible to children.

“It would seem a little questionable then to increase the cost of vaping, especially for the higher strength liquids which many smokers need to make the switch, when you’ve still got around six million adult smokers for who you’re trying to give every opportunity to make the transition to less harmful products.

“There’s also the potential negative effect of an excise on public services utilising vapes within their smoking cessation services. The IBVTA do not believe that any excise tax should be applied to products supplied via these services.

“The IBVTA will be carefully considering the consultation announced today and we look forward to working constructively with HMRC to make sure these proposals are meaningfully enforceable and don’t have unintended consequences.”

Association of Convenience Stores Chief Executive James Lowman commented: “Retailers are trying to prepare for multiple changes to the regulation and taxation of the vaping category: a ban on disposables expected to come into effect in April 2025, a variety of as-yet undrafted regulations on the siting and marketing of products, and now the introduction of duty on vape sales from 2026.

“We will work with the government to try and make these various measures coherent and effective, but retailers will be feeling confused about the purpose and implementation of these regulations.

“Responsible retailers will also be concerned at the advantage given to illicit importers and sellers of vapes who will not pay excise duty, over legitimate businesses who will apply this tax to the price of vapes.”

Dave Cross avatar

Dave Cross

Journalist at POTV
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Dave is a freelance writer; with articles on music, motorbikes, football, pop-science, vaping and tobacco harm reduction in Sounds, Melody Maker, UBG, AWoL, Bike, When Saturday Comes, Vape News Magazine, and syndicated across the Johnston Press group. He was published in an anthology of “Greatest Football Writing”, but still believes this was a mistake. Dave contributes sketches to comedy shows and used to co-host a radio sketch show. He’s worked with numerous start-ups to develop content for their websites.

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