Jeremy Hunt set to introduce vape tax in budget: report

By Kiran Paul

February 27, 2024

Photo: iStock

Jeremy Hunt is expected to announce a new levy on vaping in next week’s budget, The Times has reported.

The chancellor would also cut employee national insurance by 1 percentage-point, according to the report.

The new tax would be levied on the vape liquid, to be paid on imports and by manufacturers, with higher levels of tax for products with more nicotine.

There would also be a one-off increase in tobacco duty to ensure that vaping remains a cheaper alternative, with the two measures expected to raise more than £500 million a year between them by 2028-29, the report said.

The tax is modelled on similar schemes across Europe, with Germany imposing a €1.60 tax on every 10ml of vape liquid and Italy levying €1.30. The EU is planning a bloc-wide vaping levy.

By Kiran Paul

With a background that spans both the agility of startup environments and the established presence of Asian Media Group, Kiran tries to bring a well-rounded perspective to his work. His career as a journalist began at a dynamic news startup, where he honed his reporting and storytelling skills for five years, gaining valuable experience in a fast-paced and evolving media landscape. Since 2018, he has been contributing to Asian Trader, where a standout feature of his work has been his in-depth interviews with award-winning retailers, which he transforms into insightful profiles that appear in each issue. Since 2021, he has also been at the helm of the sister title, Vape Business.

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