Vape Duty 2026: Why Vapour Central Is Pushing for a Fairer System
Vape duty is coming and it will affect every part of the UK vaping supply chain. As an independent retailer and UK manufacturer, we do not have the luxury of ignoring it. That is why Vapour Central Ltd has already submitted evidence to HM Treasury and the Vaping Policy Team, and has been listed as a formal respondent in the Vaping Products Duty Consultation (October 2024).
Our position is clear. We support regulation, duty stamps and proper enforcement. We do not support a model that punishes legitimate businesses, prices out adult ex-smokers and leaves the black market untouched.
What the Government Is Proposing
The current plan is for a UK wide vaping products duty to start on 1 October 2026, followed by a duty stamp scheme from 1 April 2027. You can read the latest government material here: Preparing for vaping products duty.
On paper it sounds straightforward. In practice, parts of it are not. That is what we told the Treasury.
1. The Definition of “Manufacture” Needs Fixing
The consultation currently treats the act of mixing PG, VG, flavourings and nicotine as “manufacture”. That accidentally pulls in unfinished shortfills which are not ready to vape and still need the customer to add nicotine.
If the duty is applied at that stage it will:
- Penalise legitimate UK shortfill makers and specialist vape shops.
- Add admin for no public health benefit.
- Push users towards unregulated imports.
We told government that duty should apply only when a product contains nicotine and is ready to vape.
2. A Flat £2.20 per 10 ml Rate Is Not Fair
The model being looked at is a single rate, for example £2.20 per 10 ml, regardless of whether the product is nicotine free, low strength or high strength.
In our submission we recommended a tiered duty structure, for example:
- £0.50 per 10 ml for nicotine free liquids and shortfills.
- £0.80 - £2.20 per 10 ml for finished, nicotine containing liquids
This still raises revenue, is easy to administer and does not hit adult refill users twice. We also reminded Treasury that Italy saw a 70% collapse in legal vape sales after introducing a blunt tax. The UK does not need to repeat that mistake.
We understand the goverment are not going to scrap this new tax, so rather than fight them on it, we think our energy will be best focused on changing the law as apposed to stopping it, we feel we stand more of a chance this way to be heard.
3. Youth Vaping Will Not Be Solved Like This
One of the stated aims was to reduce youth vaping and get disposables under control. The current structure does not do that.
Refill bottles and shortfills, which adult vapers use in open systems, will see the largest percentage increase. Prefilled pods and disposable style devices will see the smallest increase. That makes the very products popular with teenagers relatively cheaper.
We told government that this runs against its own youth vaping objective and needs reviewing.
4. Enforcement Is Already at Capacity
Trading Standards are already stretched dealing with illegal disposables, counterfeit pods and unregistered eliquid. Placing a new duty on top of that without extra funding will only widen the gap for the illicit market.
Our view was simple. If you increase the tax you must increase the enforcement budget, or the illegal sellers will take the business. We asked Treasury to assess enforcement capacity before the duty goes live.
5. Do Not Undermine Public Health Wins
Vaping has helped thousands of smokers quit. That includes local areas like Southend which have been highlighted for progress towards smoke free status. Pricing legitimate refill products out of reach will push some people back towards smoking or to unsafe products bought online.
We made it clear that the duty must work with NHS and Stop Smoking schemes, not against them.
6. We Support Duty Stamps, If Applied Properly
We told the Vaping Policy Team that we support duty stamps and traceability on finished, nicotine containing products. That will help consumers and it will help honest retailers like us compete with sellers who do not pay UK tax.
What we do not support is applying the same costs to nicotine free shortfills. That does not target the problem products, it just raises prices.
7. Our Petition Should Not Have Been Rejected
We also recorded our concern that our public petition calling for tiered or reduced duty rates was blocked on the basis that another petition wanted the duty scrapped completely. Our proposal was not abolition. It was reform. Rejecting it removed a moderate industry voice from the discussion.
What We Asked HM Treasury To Do
In our letter we asked HM Treasury to:
- Redefine manufacture so that unfinished, nicotine free base liquids are excluded.
- Introduce a tiered or reduced rate structure in the Finance Bill 2025.
- Review how the duty impacts prefilled devices so that it does not encourage youth vaping.
- Assess Trading Standards capacity before rollout to avoid fuelling the black market.
- Engage directly with listed consultation respondents, including Vapour Central Ltd, before finalising the rules.
How This Affects Our Customers
We want our customers to understand that if prices change in 2026 and 2027 it is not because independent vape shops are cashing in. It will be because the product has picked up a UK duty. We are doing our part now to keep that duty sensible.
Until then, you can still buy fully compliant products from us in store and online:
Why This Matters Locally
We have operated in Essex since 2014 and work alongside local stop smoking initiatives. Cheap, non duty paid and non compliant vapes undermine that work. A fair duty, applied at the right point, would actually help clean up the market. A blunt duty will not.
Further Reading
About Vapour Central Ltd
Vapour Central Ltd is an independent UK vaping retailer and manufacturer based at 73 Hamlet Court Road, Westcliff-on-Sea, Essex SS0 7EU. We run multiple stores across South Essex and an online shop at www.vapourcentral.co.uk. We are committed to safe, compliant and adult only vaping.