Consumers in the UK are likely to pay more for vaping products from 1 October, when the new Vaping Products Duty comes into effect. The tax will add GBP 2.20 to every 10ml of vaping liquid, regardless of its nicotine content.

HM Revenue & Customs (HMRC) is urging manufacturers, importers, and other businesses in the vaping supply chain to complete the required registration process before the new duty takes effect. Companies that fail to obtain the necessary approvals by the deadline could face civil or criminal penalties.

According to Andy Wood, a tax specialist at Tax Barrister UK, much of the additional cost is expected to be passed on to consumers through higher retail prices. While businesses are legally responsible for paying the duty, he said it would be surprising if they absorbed the full cost, particularly as regular users purchase e-liquids frequently and even modest price increases can accumulate over time.

Wood added that the impact on consumers will depend on individual retailers’ pricing strategies. Some businesses may absorb part of the extra cost to remain competitive, while others are expected to pass on most or all of the tax. He also noted that excise duties introduced for public health purposes often become permanent once implemented, similar to existing taxes on tobacco and alcohol.