Vapes hit with new tax in Budget as part of Jeremy Hunt's smoking crackdown

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Jeremy Hunt has announced a new tax on vapes as the government takes action to tackle smoking in the spring budget.

The chancellor introduced a tobacco tax. alternatives to smoking with the aim of making them unaffordable for children. He said the move would take effect from October 2026.

It comes after the government in November last year set out plans for a "smoke-free" generation by banning the products tobacco to children aged 14 or under.

According to pre-budget reports, the tax would apply to the liquid contained in vapes, with a higher additional tax for any product containing more nicotine.

Under current rules, vapes are subject to 20% VAT, but not a specific tax like normal cigarettes are.

Officials fear the relatively cheap cost of vaping means products are more accessible to young people as well as non-smokers.

Disposable vapes cost around £6, while some supermarkets charge up to £13 for a pack of 20 cigarettes .

Disposable vapes cost around £6, while some supermarkets charge up to £13 for a pack of 20 cigarettes.

(PA Wire)

The government first said it was considering a tax on vaping during the King's Speech in November. , citing a “significant gap” with tobacco tax.

In 2023, a survey by the anti-smoking charity Action on Smoking and Health (ASH) found that 3.7% of young people aged 11 to 18 in Britain vape regularly.

The International Tobacco Control (ITC) study, an international cohort study on smoking and vaping) found that 24% of older people 16 to 19 year olds in England reported vaping in the last 30 days in 2022.

Mr. Hunt also announced a one-time increase in tobacco taxes.

Taxes on cigarettes and other tobacco products will increase despite...