Ministers are reportedly floating the idea of introducing a “vape tax” in next week’s Spring Budget which could impact of millions of Britons.
Chancellor Jeremy Hunt will announce the Government’s fiscal plans on March 6 with an expected levy on vaping to be introduced, as well as another cut to National Insurance.
A vape tax is expected to be applied to the liquid in vapes with higher rates being applied to products with more nicotine.
Furthermore, Mr Hunt is rumoured to be announcing a hike to tobacco duty in order to keep vaping as a cheaper option to smoking.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
The Government is reportedly considering a tax on vaping
GETTY
As it stands, VAT is applied to vapes, however unlike tobacco in cigarettes, there is not a separate tax in place.
The Treasury reportedly expects to raise more than £500million annually by the 2028/29 tax year with this new levy.
Similar taxes on vaping and e-cigarettes have been rolled out by European countries in recent years with the UK likely to follow suit.
Last month, the Government confirmed a ban on disposable vapes as part of its effort to clamp down on the increase in vaping among young people.
On top of this, ministers announced restrictions on flavours, packaging, and how vapes are displayed in stores.
The Government will be hoping a tax on vaping will free up money for further tax cuts which are expected to be on the Budget agenda in some form of next week.
September’s Office for National Statistics (ONS) figures revealed that 4.5 million individuals in the country vape.
That is the equivalent of 8.7 per cent of UK adults and represents a rise from 7.7 per cent of people in 2021.
LATEST DEVELOPMENTS:
Jeremy Hunt will outline any changes in next week's Spring Budget
GB NEWSThose aged 16 to 24 years old were found to e-cigarette usage while the percentage of young Britons who daily occasionally vaped in 2021 jumped from 11.1 per cent to 15.5 per cent in 2022.
The Chancellor will outline any new taxes or cuts to rates next week as part of the Spring Budget on March 6, 2024.
A Treasury spokesperson told ITV News that a decision has yet to be made on potential tax cuts in Mr Hunt’s pending announcement.
GB News has contacted the Treasury for comment.