Jeremy Hunt announces new tax on vapes in crackdown on smoking

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Jeremy Hunt introduced a new tax on vapes as the federal government moved to crack down on smoking in the spring Budget.

The chancellor launched a levy on the smoking options in a bid to make them unaffordable for kids. He mentioned the transfer would take impact from October 2026.

It comes after the federal government in November final yr made plans for a “smoke-free” era by banning tobacco merchandise for kids turning 14 or youthful.

According to pre-Budget reviews, the tax would apply to the liquid in vapes, with a further increased tax for any merchandise that contained extra nicotine.

Under present guidelines, vapes are topic to VAT however not a selected tax like regular cigarettes are.

Officials worry that the comparatively low cost price of vaping signifies that the merchandise are extra accessible for younger individuals in addition to non-smokers.

Disposable vapes retail for round £6 whereas some supermarkets cost as much as £13 for a packet of 20 cigarettes.

The authorities first mentioned it was contemplating a vaping levy at November’s King’s Speech, citing a “significant differential” with tax on tobacco.

In 2023, a survey carried out by the tobacco management charity Action on Smoking and Health (ASH) discovered that 3.7 per cent of younger individuals aged 11 to 18 in Great Britain vape commonly.

The International Tobacco Control research (ITC), a global cohort research on smoking and vaping) discovered that 24 per cent of individuals aged 16-to-19 years in England reported having vaped in the previous 30 days in 2022.

Mr Hunt additionally introduced a one-off improve in tobacco responsibility.

Taxes on cigarettes and different tobacco merchandise will rise regardless of having been hiked twice in 2023, which means they may grow to be costlier.

After final years’ second rise in tobacco responsibility, the typical worth of a packet of 20 cigarettes grew to £14.39 – up by £1.55. It is predicted that the new price will see that common develop to £16, an extra improve of £1.61.

First asserting the transfer final yr, prime minister Rishi Sunak mentioned extra should be accomplished to “try and stop teenagers taking up cigarettes in the first place” as he set out plans to introduce a new legislation banning tobacco gross sales to anyone born on or after January 1 2009 in a plan backed by the Labour Party.

Downing Street mentioned it anticipated the plan to end result in as much as 1.7 million fewer individuals smoking by 2075.