The UK government has confirmed a new excise tax on vaping products in the 2025 Budget. Officially called the Vaping Products Duty (VPD), it’s set to come into force on 1 October 2026. 

While the aim is to reduce youth uptake, this legislation will affect all adult vapers, manufacturers, importers, and retailers across the UK.

What is the Vaping Products Duty?

The VPD applies to any vape liquid containing nicotine, including products made in the UK or imported. It also covers liquids that contain glycol and/or glycerine and are intended to be vapourised, even if they aren’t classified as nicotine, medical, or tobacco products.

This means that both nicotine-containing and nicotine-free liquids are included, expanding the scope far beyond what many vapers may have anticipated.

How Much Duty Will Be Added?

The government has confirmed a flat-rate duty on ten millilitres of E-Liquid:

• 10ml = £2.20 duty
• 20ml = £4.40 duty
• 50ml = £11.00 duty
• 100ml = £22.00 duty

These figures are fixed in the legislation and apply to any nicotine-containing liquid, as well as any liquid intended to be vapourised. Retail pricing is not yet known, and businesses will ultimately decide how the duty is applied in practice.

Why the Government Says It’s Doing This

According to official statements, the objectives are to:

• Reduce youth and non-smoker uptake
• Make vaping less “affordable and appealing”
• Maintain a tax gap between vaping and smoking

To prevent people from reverting to cigarettes, the tobacco duty will rise at the same time.

Who and What Will Feel the Impact Most?

Adult Vapers

An estimated 5.4 million UK vapers will face higher costs. Heavy users, especially those using refillable open-tank systems, will carry the largest burden. Even hobbyist vapers using shortfills, including 0mg liquids, will be affected.

Businesses

Manufacturers, importers, and retailers will all face new administrative duties, including registration, monthly tax returns, and compliance tasks. These obligations are in addition to the financial impact of the duty itself.

Shortfill Users

While disposables are already banned, the VPD applies to bottled E-Liquids, prefilled pods and shortfills commonly used by hobbyist vapers. Even nicotine-free liquids fall under the legislation, widening the range of affected products.

The Black-Market Problem: A Real Risk

The government expects some vapers may respond to higher prices by cutting down. However, a more serious consequence is likely to be a growth in the black-market vape trade.

Historically, whenever legal prices rise sharply, illicit sellers step in with:

• Counterfeit vape liquids
• Unregulated large-volume bottles
• Imported, untested products
• Non-compliant devices

The UK has already seen a surge of illegal vape imports. A significant tax hike could push even more consumers toward unsafe, unregulated sources or back to conventional cigarettes.

If public health is the goal, enforcement against illicit traders must be prioritised, rather than placing the financial burden on responsible adult vapers who already use legitimate channels.

Will Vapers Support This Legislation?

In short: almost certainly not. Most vapers are adults using e-cigarettes as a less harmful alternative to smoking. The VPD risks:

• Increasing the cost of staying smoke-free
• Creating barriers for people trying to quit
• Pushing people back to tobacco
• Punishing responsible users while illegal sellers thrive
• Undermining harm-reduction strategies that have been effective for over a decade

The vaping sector, from independent vape shops to UK manufacturers like IVG, also opposes the measure. Businesses already operate in a challenging environment, and the new duty adds further financial and regulatory pressure without addressing the real issues: youth access and illicit supply chains.

What Happens Next?

• April 2026: Businesses begin registering for the VPD
• October 2026: Duty comes into force
• Duty stamps for vape products will be introduced, like cigarette duty stamps
• HMRC and Border Force will receive increased funding for enforcement

Penalising Adult Vapers Isn't the Answer

The Vaping Products Duty represents another major change to UK vaping regulation within 18 months. While the goal of reducing youth uptake is important, the method, a substantial, across-the-board tax on legal vape liquids, risks causing more harm than it prevents.

Adult vapers and legitimate businesses will bear the cost, while illicit traders stand to benefit. If the government truly wants to protect public health, enforcement against illegal sellers must be front and centre. Penalising adult ex-smokers who rely on vaping to stay smoke-free is not the solution.