Vape tax: are former smokers being punished for switching?

For people who have replaced cigarettes with vaping, the arrival of a new tax may feel like a financial penalty for making a healthier choice.

A survey by retailer E-Cigarette Direct suggests considerable anxiety ahead of Vaping Products Duty, which begins on Thursday, 1 October 2026.

Of 2,068 vapers surveyed, 52% expected a major financial impact, while another 37% anticipated a moderate impact.

The duty is £2.20 per 10ml of vaping liquid, including nicotine-free varieties. With VAT, that represents a potential £2.64 increase if fully passed on to customers: approximately £964 annually for somebody using 10ml daily. 

Eligible existing unstamped stock can, however, continue to be sold until 31 March 2027, meaning price increases may arrive unevenly.

The government’s stated aim is to discourage vaping among young people and non-smokers while preserving a financial incentive for smokers to switch.

However, 28% of respondents who previously smoked said they would never have switched if this tax had already existed.

More concerningly, 23% said higher prices would make them more likely to smoke or purchase illegal nicotine products. Within overlapping responses, 17% indicated greater likelihood of buying illegal products and 13% of smoking.

These figures describe intentions, rather than behaviour already observed, but they raise questions about possible unintended consequences.

More than 600 respondents submitted comments, many expressing anger or feeling punished for abandoning cigarettes. 

E-Cigarette Direct chairman James Dunworth urged the government to monitor returning smokers, reduced switching and growth in illegal sales.

There are limitations. Participants came from the retailer’s email subscribers, almost all had previously smoked, and the results were not weighted to represent UK vapers. Respondents also saw estimated annual tax costs before answering the financial impact question. This is a snapshot of one customer community, rather than a national forecast.

Nevertheless, the health distinction matters. The NHS advises that vaping is less harmful than smoking, although it is not harmless and its long-term effects remain uncertain. Children and non-smokers should not start.

For former smokers worried about affordability, returning to cigarettes is a damaging response. Speak to a pharmacist or local stop smoking service about managing cravings and suitable alternatives. Buy vaping products from reputable suppliers covered by UK safety regulations.

Protecting young people is essential. So is helping adults remain smoke-free. Policymakers must judge this tax by its health consequences, alongside the revenue it generates.

https://www.ecigarettedirect.co.uk