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What The UK Vape Tax Means For You

What The UK Vape Tax Means For You

In a move that will undoubtedly alter the landscape of vaping in the United Kingdom, a new tax on vaping products has been introduced. This change is particularly significant for those who use e-cigarettes as an alternative to smoking tobacco. 

Here's what you need to know about the new vape tax and how it will affect your vaping experience.

At the heart of this change is a tax that targets e-liquids based on their nicotine strength. For every 10ml of e-liquid that contains more than 11mg of nicotine, a hefty tax of £3 will be imposed. This means if you favour stronger e-liquids or use 18mg or 20mg nicotine shots, you'll be digging deeper into your pockets.

Let's not overlook lower-nicotine solutions. Even if you're using e-liquids containing less than 11mg of nicotine, a new tax of £2 per 10ml will still be applicable. This essentially means that low mg users on powerful devices will be affected most as 1.5mg & 3mg (popular choices) will be taxed the same per ml as 10.9mg liquids.

Even if you do not use nicotine at all, zero nicotine liquid (0mg) will be taxed at a rate of £1 per 10ml despite having none of the chemical present. It should also be noted that the duty is also applied to all products before VAT, increasing the tax burden by an additional 20%.

It’s not just consumers who are being targeted by this tax - when the legislation comes into effect this will force e-liquid manufacturers to operate from bonded warehouses where goods such as alcohol, tobacco and now vaping products can be stored securely. 

As you can imagine, this could translate into increased costs for manufacturers - between complex logistics and security costs, many small businesses will take a hit. This will reduce choice for the consumer and concentrate the market into the hands of large companies.

For vape shops in particular, the cost of holding inventory will surge. The initial investment needed to buy stock for their shelves could strain small businesses and will likely lead to decreased choice and increased prices for the end consumer.

Another point of considerable worry is security. With the new tax in place, e-liquid products will become significantly more valuable. This surge in value could unintentionally encourage illegal activities - the possibility of black market trade needs to be considered, as well as a rise in smuggling and illegal vape dealers.

Enforcing the tax places authorities at the helm of rigorously monitoring and curbing such illegal activities, but whether the systems in place will be sufficient to clamp down on these activities remains to be seen.

The question that remains to be answered is whether the authorities are up to the task of rigorously monitoring the industry and stamping out illegal activities.

For vapers, this means wrestling with higher costs and possibly contending with a market that could become flooded with unregulated products. The health implications of such products are a serious concern, as they are often not subject to the rigorous safety testing that legal products undergo.

In conclusion, the new vape tax in the UK is set to drastically alter the vaping industry and community. With higher costs, increased regulatory requirements, and the looming shadow of the black market, both the business side and consumers are poised to face challenges.

What can I do?

The tax won’t come into effect until October 2026, so there’s plenty of time for you to take action and keep your finger on the pulse of the conversation.

As the market landscape continues to evolve, staying informed and proactive is key to making your voice heard. Whether it's through active participation in community forums, supporting businesses that align with your values, or simply staying educated on new consumer trends and legislation, every action contributes to shaping a market that reflects the collective will and needs.

For those who wish to delve deeper, the DarkStar blog is dedicated to providing ongoing content that empowers you with knowledge and actionable insight. From in-depth analyses of the vaping market changes to updates on legislation, we are committed to keeping you informed.

We encourage you to join the conversation by leaving comments, sharing our posts, and suggesting topics that you want us to explore. Together, we can foster a community that is both aware and influential. 

Stay tuned to the DarkStar blog for regular updates, and let’s navigate the ever-shifting currents of the market together with both eyes open to the opportunities and challenges ahead.

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Phil - March 20, 2024

I’d be interested to know what they will decide counts as an e liquid.
Will they add the 1£ tax to every 10ml of flavour concentrate or VG/PG?
Could places sell their 0mg juice branded differently as say food flavouring for cakes maybe?
If it’s £3 for 10ml shots what about companies buying a litre of 72mg?

Benjamin Stevens - March 19, 2024

There must be another way to deture youngsters from getting there hands on vapes, surging prices is only going to turn people back to smoking, but thats going up a year every year? Intresting, theres more tax on ciggerettes than £1 ,£2,£3 on vapes, seems like there cashing in on people trying to more away from smoking and using underage as a caytilist for tax. Not saying that is isnt happening as it is

Kath - March 19, 2024

This tax is yet another moneymaking scheme thought up by this cowboy government. They’re trying to make up for the loss of revenue due to the reduced sales of cigarettes. As someone else commented, it has nothing to do with people’s health. If anyone knows of a formal petition to fight this decision I will gladly sign it.

David Thorpe - March 19, 2024

The government cannot control the illegal disposables that come into the country now so how will they stop it in 2026 .
The same with knock off tobacco people went to vapeing to stop smoking or health reasons as I did did not take them long to jump on the tax band wagon the torys want to cut taxes for there rich mates so tax the working man.

Jeff - March 19, 2024

Will the new tax affect people making their own eliquids?
I buy PG, VG and concentrated flavours. Will the cost of buying any of these increase?

I already have enough nicotine (in PG) to last me a few years.

Chris Dench - March 19, 2024

Hi, I work for the vaping industry and I am a mixologist and head of flavour development within my company.
This will have a serious impact on our company, our livelihoods and careers.
Our director is determined to survive this New tax thats likely to kill the industry and some companies around the UK.
We are a small team working in a warehouse that is secure but it would be great to know what we have to do to ensure better security for the future.
This tax is clearly another way of the government trying to get more money from the hard working tax payers and they are not concerned about people’s health at all, it’s just another money spinner to pay back for all the money that has been wasted over the years by this government.
I would like to included in this conversation as its my career and my company that is at stake here at the end of the day.
Yours sincerely Mr Chris Dench

Ann - March 19, 2024

As a mixer, at what point is it proposed VG and PG become bonded goods?

Michael Jones - March 19, 2024

Another disgusting move by a cowboy government. After calls for disposals to be banned they have instead seen it as a way to line their pockets. Absolute scum.

Chris - March 19, 2024

There are over 4 million vapers in the UK and such numbers have significant clout when lobbying government on potential legislation.

The recent petition garnered less than 50,000 signatures (last time I checked) and this shows the level of current community engagement. Not to mention the UK vaping industry bodies being utterly hopeless in lobbying on behalf of vapers in the UK.

We need to come together under a single voice and tell government (in power or in waiting) what severe taxation and restrictions would mean to the millions of vapers that have quit smoking over the years. We need to fight every measure designed to restrict, tax or introduce prohibition to our industry.

Frederique - March 19, 2024

Absurd rules by government , just like they killed it in Holland and Belgium as we speak ….

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