IBVTA statement on news story that claims a ‘vaping products levy’ will be announced as part of next week’s budget.

A story published in The Times today claims that Chancellor Jeremy Hunt will introduce a levy on the liquid used in vapes, with higher levels of tax for products with more nicotine.

The IBVTA strongly believes that a tax applied to vaping products would disproportionately affect both public health and the government’s smoking cessation efforts. It would be likely to significantly increase illicit trade, which is one of the main causal factors in the increase in youth experimentation and use. The IBVTA therefore does not believe excise should be applied to any vaping products at this time.

In the event that excise is applied, it is important that the negative effects of applying tax either to overall nicotine content, or e-liquid content of products is carefully considered.

Calls for an excise tax have been broadly on two separate grounds: pricing single use vapes out of the reach of young people; and addressing the environmental concerns of dealing with single use vape waste.

IBVTA Chair, Marcus Saxton, said: “Applying an excise on liquid refills used with refillable and rechargeable devices would do very little to elevate the prices of products most liable to youth uptake, and conversely disincentivises moving consumers to more sustainable products.

What concerns our members most is that the excise as rumoured in the media today might not be applied to the right place along the supply chain, nor targeted via the right mechanism. An excise on liquid would not only disproportionately affect already compliant products and businesses but would also be ineffective in addressing government concerns.

There’s also the potential negative effect of an excise on public services utilising vapes within their smoking cessation services. The IBVTA do not believe that any excise tax should be applied to products supplied via these services.”