On Thursday, Labour’s new vape tax came into effect. Vaping Products Duty charges £2.20 per 10ml of vape liquid. Because VAT is charged on top of the duty, the real cost at the till is £2.64. In practice, an average £3.00 bottle of 10ml liquid will now cost £5.64, an 88% price hike.
VPZ, the UK’s largest vape retailer, surveyed 2,640 of its customers ahead of the tax coming into force and found that 63% say it will be harder for them to stay off cigarettes and tobacco, 21% say they may return to smoking, and 34% say they will look for “cheaper alternatives”, which in practice is likely to mean illicit vapes, cigarettes or tobacco.
VPZ’s own prices show the scale of the change. Its standard 10ml liquid, which cost £4.49 before the tax, now costs £7.13, a 59% increase. Its standard 100ml liquid has risen from £16.99 to £43.39, a 155% increase.
E-Cigarette Direct, one of the UK’s largest online retailers of vapes also surveyed 2,068 of its customers and found that 28% said that they would not have switched from smoking to vaping if the tax already existed, with 1 in 6 saying they are now more likely to purchase illegal products with the tax in place.