As reported in the Echo (print edition, 29 January 2026):
The owner of a local vape business has warned that the government’s proposed vape duty could threaten local jobs and fuel illegal activity by pushing consumers toward the black market.

Online article can be found here

I’m writing this to explain, in my own words, why I raised these concerns and what the proposed vape tax means in real terms for independent vape retailers like us.

I’ve run Vapour Central for nearly nine years. We operate three local stores and employ six full-time members of staff. We’re a small, independent business and an approved Smoke Free partner shop working with the local council to support adult smokers to quit through regulated alternatives.

For the first time since opening, I am genuinely worried about the future of the business and the people we employ.

A flat tax that doesn’t reflect reality

The proposed vape duty would add around 22p per millilitre to the cost of e-liquids, regardless of nicotine strength. In my view, this is a blunt approach that doesn’t reflect how vaping is actually used by adult smokers.

Higher prices in regulated shops are unlikely to reduce demand. From what we see day to day, they are far more likely to push people towards cheaper, unregulated sources.

The black market is already active

The illicit vape market already exists and is growing. Customers regularly tell us they can buy cheaper products online or locally through informal sellers. These products are untaxed, unregulated, and do not meet UK standards.

Increasing prices in legitimate shops risks driving more people towards these unsafe sources, undermining public health aims and penalising businesses that operate responsibly.

The issue of double VAT

One aspect of the new duty that is often overlooked is VAT.

Retailers will pay VAT on the vape duty when purchasing stock from suppliers, and then charge VAT again when selling the product to customers. This effectively means VAT is applied twice, further increasing prices for consumers and adding pressure on compliant retailers.

More pressure on small businesses

The vape duty does not come at a time when businesses are stable. Small retailers are already facing:

• Increases in National Insurance contributions

• Higher National Minimum Wage costs

• Increased supplier prices following China’s removal of VAT export rebates

Taken together, these pressures are becoming increasingly difficult to absorb.

Local jobs at stake

Behind every small business are real people. In our case, six full-time members of staff who rely on these jobs to support themselves and their families.

Independent vape shops are not large multinationals. We are local employers, part of the high street, and often involved in local stop-smoking efforts. A poorly structured tax risks wiping out responsible operators while leaving illegal sellers untouched.

Calling for a proportionate approach

This is not about opposing regulation or taxation. It is about making sure policy is proportionate, practical, and does not create unintended consequences.

I believe any approach to vape taxation should recognise differences in nicotine strength, protect local jobs, and avoid strengthening the illicit market.

That is why I raised these concerns publicly and with local representatives, and why I believe it’s important to explain what this policy means on the ground before lasting damage is done.

Sam Bignell
Owner, Vapour Central