British finance minister Jeremy Hunt announced today that the UK will impose taxes on vaping products for the first time, beginning in two years. The tax, which the government says will reduce youth vaping, will likely lead to fewer smokers switching to vapes, and push some current vapers back to smoking.
Although the tax will be subject to a public consultation, the government’s spring budget document lays out the current plan in detail, according to The Mirror. The budget says the tax will be £1 per 10 milliliters of zero-nicotine e-liquid, £2/10 mL for e-liquids containing from 0.1-10.9 mg/mL of nicotine, and £3/10 mL on products containing e-liquid in 11 mg/mL or greater strengths.
Currently, vapes are subject to a 20 percent value added tax (VAT—a sales tax), like most consumer products. The new tax will be in addition to the 20 percent VAT.
So a consumer who currently pays £5 for a 10 mL bottle (the maximum legal size) of e-liquid in 18 mg/mL nicotine strength would be charged an additional £3 tax plus the £1 VAT, for a total cost of £9 (about $11.45 U.S.)—a total tax rate of 44 percent.
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