Jeremy Hunt has unveiled a new tax on vapes in a bid to discourage non-smokers from taking up the habit.
The Chancellor confirmed the measure - due to come in from October 2026 - as part of his Spring Budget.
However, he said that, because vapes “play a positive role” in helping smokers quit, there will also be a one-off increase in tobacco duty to ensure vaping remains cheaper than smoking.
That will see 40p added to a pack of cigarettes.
READ MORE: Ross 'deeply disappointed' by Hunt windfall tax extension
Currently, vaping products are subject to VAT at 20% but, unlike tobacco, they are not also subject to excise duty.
A 12-week consultation on the policy design launched today, suggests a £1 levy per 10ml for nicotine free liquids, a £2 tax per 10ml on liquids that contain 0.1-10.9 mg nicotine per ml, and £3 per 10ml on liquids that contain 11mg or more per ml.
Deborah Arnott, chief executive of Action on Smoking and Health, welcomed the move.
“The additional increase in tobacco taxes is welcome, as keeping vaping cheaper than smoking is vital to encourage smokers trying to quit to switch to vapes which are the most effective stop smoking aid available over the counter.”
“However, it’s smokers and those trying to quit and stay quit who will be paying these extra taxes.
“It takes the average smoker thirty attempts before they successfully quit, and specialist support and anti-smoking campaigns can increase the likelihood of success many times over.
“These new taxes should be used to plug the cuts in prevention measures and help the government achieve its smokefree 2030 ambition.”
READ MORE: Budget 2024 OBR numbers tell different tale to Jeremy Hunt
Christopher Snowdon, head of lifestyle economics at think tank the Institute of Economic Affairs, described it is a “deeply cynical cash grab from the Chancellor”.
He added: “Forget sin taxes – this is a saint tax. Vapers did what the Government wanted and gave up smoking. They are now being punished for it.
“This is scientifically and economically illiterate. Combined with the ban on disposable vapes, it seems the Government is intent on keeping people smoking.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel