UK Smoking and Vaping Costs to Rise in 2026 with New Duties

UK Vaping Market Decline, Tobacco Sales Drop

Starting in autumn 2026, UK vapers will face a significant price increase due to a new flat-rate Vaping Products Duty (VPD) of £2.20 per 10ml of e-liquid. This tax applies to both nicotine and nicotine-free products, aiming to deter youth uptake while maintaining a financial incentive for smokers to switch. The measure is expected to impact 5.1 million users and generate substantial revenue for the government.

Key Takeaways:

  • Flat Rate Tax: A levy of £2.20 per 10ml applies to all vaping liquids, adding £2.64 with VAT.
  • Price Impact: Cheapest e-liquids could see price hikes of up to 267%, reaching £3.83 per bottle.
  • Scope: Includes nicotine-free and CBD vaping liquids.
  • Enforcement: Mandatory Vaping Duty Stamps (VDS) required from April 2027 to combat illicit trade.

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The Vaping Products Duty (VPD) refers to a new UK government tax on e-liquids designed to reduce vaping affordability for non-smokers and youth, while balancing the need to support adult smokers in quitting. Set to take effect in late 2026, this policy marks a significant shift in the economic landscape of the UK’s vaping market.

Effective from October 1, 2026, the new Vaping Products Duty will impose a flat excise rate of £2.20 per 10ml of vaping liquid. This charge applies to all vaping products, regardless of their nicotine strength, and covers items both produced within the UK and imported. The policy, first announced in the Spring Budget of 2024 and confirmed in the Autumn, seeks to reduce the affordability and appeal of vapes.

To ensure that vaping remains a financially more attractive alternative to traditional smoking, which is considered more harmful, the government will also increase Tobacco Duty on the same date. This hike will see tobacco taxes rise by the Retail Price Index (RPI) plus 2%, with an additional £2.20 per 100 cigarettes (or per 50g of tobacco) added on top. This additional levy mirrors the amount set for the VPD, maintaining the price differential between the two product categories.

The government stated it is “committed to reducing the affordability and appeal of vaping products… while maintaining the financial incentive for smokers to switch to less harmful alternatives.” These fiscal measures follow the recent ban on the sale of single-use disposable vapes across the UK, further tightening regulations on the industry.

Matthew Ma
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