The New Nicotine Alliance UK has asked the Treasury to put the new Vaping Products Duty under formal review, just eleven days after the tax took effect. In a letter sent on 12 October 2026 to James Murray MP, Financial Secretary to the Treasury, the advocacy group warned that the levy risks making safer alternatives less affordable and weakening the financial incentive for smokers to switch.
The duty, which came into force on 1 October 2026 at £2.20 per 10ml of vape liquid, was designed to raise the cost of vaping and discourage uptake. For background on how the levy works, see our UK vape duty guide.
| Key detail | What we know |
|---|---|
| Tax rate | £2.20 per 10ml of vape liquid |
| Date in force | 1 October 2026 |
| Review request | 12 October 2026, letter to James Murray MP |
| Ask | Post-implementation review of the duty |
The Canada warning
The NNA points to evidence from Canada, where higher taxes and tighter regulation shrank the legal vaping market without reducing overall consumption. The group's argument is blunt: when legal prices climb, demand does not simply vanish. Consumers may turn to illicit products, or worse, drift back to cigarettes, which remains the benchmark in any vaping versus smoking calculation.
Even the impact assessment agrees
Perhaps the sharpest part of the letter is that the NNA does not need to speculate about the risk. The government's own impact assessment acknowledges that higher vaping prices may encourage some people to switch to tobacco. That admission, the alliance argues, makes a formal review not just reasonable but necessary.
Falling sales are not a health win
The NNA's core message is that falling legal sales do not automatically equal public health success. If vape sales drop after the duty, the government must establish what actually happened to those consumers: did they stop vaping entirely, return to smoking, or turn to unregulated products? Only the first of those outcomes is a win.
The letter closes with a clear position. If the evidence shows the duty is undermining switching or feeding the illicit market, the government should be prepared to reconsider its approach. Whether the Treasury agrees to a formal review will be the next thing to watch.
Source: New Nicotine Alliance press release, 12 October 2026 (nnalliance.org).