The UK government is expected to propose a new tax on vaping products when it unveils the national budget on March 6th. This would mark the first time vapes are taxed in the UK after nearly a decade of progressive harm reduction policies.
Government sources say the vape tax aims to discourage youth vaping. It also intends to offset lost revenue from eliminating other taxes.
If implemented as expected, vape prices could rise by over 25%. Taxes make vapes more expensive compared to cigarettes, which evidence shows increases smoking rates.
Why A Vape Tax Now?
The UK has taken a harm reduction approach to vaping up till now. Vapes have not been taxed and advertising is permitted within regulations, helping adult smokers quit cigarettes.
But amid youth vaping concerns, the government launched a public consultation in summer 2022 on possible vape regulation changes. These included a tax, flavor restrictions, marketing rules and banning disposable vapes.
The consultation ended in December. Responses will supposedly guide the announcement of vape reforms with the March budget, though a tax looks certain.
What Could The Vape Tax Look Like?
Most countries tax vapes per ml of e-liquid or based on the wholesale product cost. If similar, UK vape prices may jump over 25%.
Some Conservative MPs oppose taxing vapes without evidence it reduces youth uptake. But the Labour Party will likely provide votes needed to pass a budget with vape taxes.
Why Taxes On Vapes Increase Smoking
Research shows taxes on e-cigarettes raise cigarette sales and use. Vapes and cigarettes are economic substitutes - if one gets more expensive, people switch to the other.
So extra costs imposed on the relatively cheaper vapes erase their price advantage over cigarettes. This pushes some vapers back to deadly smoking, including teens.
A vape tax may raise revenue but risks significant public health harms if not carefully designed with smoking impacts in mind.
