Proposed Tobacco and Vapes Bill in England Considers Licensing Fees
The Tobacco and Vapes Bill in England, which aims to regulate the sale of tobacco and vaping products, is currently making its way through the legislative process. Having completed the Committee stage in the House of Commons, the bill will next move to the Report Stage and 3rd Reading, with dates yet to be determined.
Licensing Scheme Details Remain Uncertain
While the exact details of the proposed licensing scheme for tobacco and vape retailers are still unknown, it is expected that businesses will need to pay an initial application fee, as well as potential renewal fees at set intervals. An alternative model could mirror the premises licences under the Licensing Act 2003, where a one-time licence is granted, but an annual fee must be paid to the licensing authority to maintain the licence.
During the Committee stage, vaping retailer Evapo suggested an annual fee of £750 per store. This proposed amount is notably higher than most fees associated with the Licensing Act 2003, which are based on the rateable value of the property.
Comparison to Licensing Act 2003 Fees
Under the Licensing Act 2003, premises licence fees are determined by the property’s rateable value, with application fees ranging from £100 to £1,905 and annual fees ranging from £70 to £1,050. Only businesses with large premises and those subject to a fee multiplier (applicable when the premises are used exclusively or primarily for the supply of alcohol for on-site consumption) face fees exceeding Evapo’s suggested £750.
Licensing Act 2003 premises licence fees
| Band | Rateable value | Application fee | Annual fee |
|---|---|---|---|
| A | None to £4,300 | £100 | £70 |
| B | £4,300 (sic) to £33,000 | £190 | £180 |
| C | £33,001 to £87,000 | £315 | £295 |
| D | £87,001 to £125,000 | £450 | £320 |
| E | £125,001 and above | £635 | £350 |
| D with multiplier | £87,001 to £125,000 | £900 | £640 |
| E with multiplier | £125,001 and above | £1,905 | £1,050 |
Future of Licensing Fees Remains Uncertain
As the Tobacco and Vapes Bill progresses through the legislative process, the scale and structure of the licensing fees for tobacco and vape retailers remain uncertain. It is yet to be determined whether the fees will be a flat rate or linked to factors such as the rateable value of the property.
Businesses in the tobacco and vaping industry should continue to monitor the development of the Tobacco and Vapes Bill to ensure they are prepared for any potential licensing requirements and associated fees. As more details emerge, retailers will need to factor these costs into their business planning and budgeting to maintain compliance with the new regulations.
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