The Vaping Products Duty, applied at a rate of £2.20 per 10ml of e-liquid (up to £2.64 when VAT is accounted for), has come into force today.
In response, UKVIA Director General John Dunne said:
“This is nothing short of a tax on public health. If we want to talk about duty, how about the Government’s duty to protect a product that has helped millions of adults cut down on or stop smoking, rather than imposing a new tax that will increase the cost of that same product by as much as 264%?
“Worse still, our survey of almost 3,500 adult vapers found the average e-liquid consumption is more than twice the figure HMRC used to model the duty, meaning the rate could have been significantly lower and still met the Government’s revenue target. Instead, millions of adults are being asked to pay more.
“Our survey also showed around 50% of vapers would turn back to smoking or to the black market once the duty comes into play, while fresh analysis from the Centre for Economics and Business Research estimates that it could see 946,000 vapers and dual users switch exclusively to smoking, 1.5 billion additional cigarettes smoked each year and £306.6m in additional healthcare and productivity costs.
“Protecting young people is essential. But that means stronger enforcement against illegal and rogue traders, not making legal vaping more expensive for adults trying to stay away from cigarettes. That’s why we’re calling for a Fair Deal for Vaping which includes action against the illicit market. The Government needs to look at the evidence and be prepared to change course before this miscalculation sends the UK’s smokefree ambitions up in smoke.”
