Millions of individuals who smoke or use vaping products are facing upcoming price hikes. The major change involves the introduction of a new tax on vaping items, scheduled to take effect on October 1, 2026. The newly imposed Vaping Products Duty will result in an additional fixed cost of £2.20 per 10ml to all e-liquids, irrespective of their nicotine content.
Estimations suggest that a 10ml e-liquid bottle currently priced at £3.99 may surge to £6.63, inclusive of VAT, as reported by vapeshop.co.uk. Larger refill containers are expected to experience even more substantial price increases. For instance, a 50ml bottle priced at £11.99 could potentially escalate to £25.20 with VAT applied. Furthermore, tobacco products will also see a rise in prices starting from October 1, 2026, due to a planned one-time duty increment.
Tobacco duty will be adjusted according to the Retail Prices Index (RPI) inflation rate, plus an additional two percentage points, with an extra £2.20 per 100 cigarettes and £2.20 per 50g on other tobacco products.
The increase in tobacco duty typically occurs annually following the autumn Budget. This development follows the approval of the Tobacco and Vapes Bill by peers last month, which will prohibit individuals currently aged 17 or younger from purchasing cigarettes in the future.
Under the proposed legislation, retailers will be prohibited from selling tobacco, herbal smoking products, or cigarette papers to individuals born on or after January 1, 2009. The Bill must undergo parliamentary procedures, requiring approval from both the Commons and Lords before being enacted into law. Additionally, adults attempting to buy vaping or nicotine products on behalf of minors will face penalties.
Ministers are also poised to acquire new authority to regulate the flavors, substances, appearance, size, texture, and packaging of smoking products, including vapes, in an effort to protect public health. Health minister Baroness Merron emphasized the importance of this legislation in preventing smoking-related health issues and nicotine addiction among future generations.
Expressing support for the Tobacco and Vapes Bill, Jamie Strachan, the operations director at VPZ, a prominent vaping retailer with a national presence, emphasized the significance of responsible regulation in safeguarding young individuals and promoting access to safer alternatives for adult smokers. Strachan highlighted the need for stringent enforcement and clear product standards as the government formulates the detailed regulations to implement the legislation.
