Vape duty raises concerns for retailers

**Vape duty raises concerns for retailers**

Vape store manager Anne Durose says she fears the new duty could eventually force shops to shut as prices rise.

A store manager has warned that customers may be pushed towards stronger products because of the new Vape Product Duty.

Government guidance says a duty of 22 pence per millilitre of vape liquid purchased will now be added, regardless of whether the liquid contains nicotine.

Anne Durose, who manages A Fistful of Vapes in Hanley, said: "Because of the price structure the government has put on, pre-filled pod kits will be the cheapest".

James Murray, the Financial Secretary to the Treasury, said the tax would remove "illicit vapes" from high streets, adding: "We're backing retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don't."

The duty will be applied before VAT is calculated, meaning a 10ml e-liquid priced at £3.99 will attract £2.20 of duty and 44p of VAT, taking the total to £6.63 - almost twice the original price.

Durose said customers who used to buy refillable liquid vapes are now turning to higher strength nicotine pod kits to avoid the price rises.

She said her shop sells pod kits with 10 and 20 mg of nicotine as a cheaper option for new customers moving from cigarettes to vaping before they invest in more expensive kits, but she is worried the nicotine levels are too high for most customers in her shop.

"People that do want to vape are going to try and spend less money, but essentially will be vaping something a lot stronger, and nicotine that they don't need to be vaping, just because it's the cheaper option," she added.

A spokesperson for the Department of Health and Social Care, the Medicines and Healthcare products Regulatory Agency and HM Revenue and Customs said the duty applies to all vaping liquids, whether or not they contain nicotine.

They also said the duty "is calculated on the volume of liquid alone, not nicotine content, and so a device containing more liquid will be liable to more duty."

The duty is added to vape products bought and sold in the UK.

Durose also said product costs will likely more than triple because of the duty.

"[If], budget wise, a week we spend £1,500 buying stock...once the Vape Product Duty starts coming through, [it's] going to go up to over £5,000."

The manager added that she had growing concerns after seeing customers stock up on products before it came into force, which she feared could have a knock-on effect on the business.

"If customers aren't coming in to buy the stock, we can't afford to replace it, which then in turn means we aren't going to be here."

Products will also need an HMRC Vaping Duty Stamp, but stores have a grace period until 1 April 2027 to sell any previously ordered unstamped stock.

The Royal College of Paediatrics and Child Health called on the government to go further with its proposals for new restrictions on vape sales, including limiting the number of flavours available.

The report said vaping was associated with problems including wheezing and coughing, poor oral and dental health, poor sleep, mental health problems and eye symptoms.

Emma Lyndon said she used to smoke but switched to vaping to improve her health.

Emma Lyndon said she used to smoke cigarettes but moved to vapes after having a stroke and deciding to make some changes to her health.

She now fears customers, like herself, will be pushed towards cheaper, illegally imported vapes that are not regulated.

"It's absolutely ridiculous the price of vaping now."

"You can't win...the government want us to [switch] smoking to vaping and then they want us to go without nicotine," she added.

Research from Action on Smoking and Health, a charity set up by the Royal College of Physicians to lobby and campaign for tobacco control, found that three million people in Britain had quit smoking to use a vape over the previous five years.

The charity said vaping would still be cheaper than smoking cigarettes after the government's £2.20 increase on tobacco duty per 100 cigarettes or 50g of tobacco.

The government wants to reduce the appeal of vapes by making them more expensive, as more evidence emerges about their harmful effects on health, especially among children and young people.

The vaping industry has lobbied against the new tax, arguing that affordable vapes help people quit smoking.

Health minister Karin Smyth said "these measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products."