Vape shops on the Isle of Wight could face an increasingly difficult battle for customers as a new £2.20-per-10ml duty on vaping liquid comes into force.
The new Vaping Products Duty took effect across the UK on 1st October, applying to vaping liquids manufactured in or imported into the country from that date.
It is charged at £2.20 for every 10ml of vaping liquid, regardless of whether or not the product contains nicotine.
Although the duty is paid by approved manufacturers, importers and warehousekeepers, HM Revenue and Customs says it is a commercial decision whether the additional cost is passed further down the supply chain to retailers and consumers.
That leaves vape users facing the prospect of higher prices as newly duty-paid stock begins filtering onto shelves.
For specialist vape shops on the Isle of Wight, the changes come with another challenge – convincing increasingly cost-conscious customers to continue buying through physical stores. Online sellers and larger retailers operate in the same duty regime, but customers are able to compare prices between suppliers quickly, potentially increasing competition on businesses reliant on high street trade.
Exactly how Isle of Wight retailers will respond to the new costs – including whether they will absorb some of the increase or pass it on to customers – remains to be seen.
There is, however, some breathing room. Wholesalers and retailers have been given a 6-month grace period in which eligible existing vaping products that are unstamped and were not liable for the new duty can continue to be sold.
From 1st April 2027, all vaping products sold in the UK must carry a valid vaping duty stamp.
Karin Smyth, Minister of State for Health, has said:
“Our public heath advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.
“These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets.”
