Understanding the New E-Liquid Taxation in the UK: What It Means for Vapers and How It Still Makes Vaping a Cheaper Alternative to Smoking

The vaping industry in the UK is facing a significant change with the introduction of a new tax on e-liquids, set to come into effect October 2026. This tax, which will add £2.20 to every 10ml bottle of e-liquid, has raised questions and concerns for many. However, when we take a closer look at the numbers and consider how vaping still stacks up against traditional smoking, the situation may not be as dire as it seems. In this article, we’ll explore how this new taxation might impact you and why vaping continues to be a more affordable alternative to smoking.

Table of contents:

1. The New Tax
2. Vaping Still Remains Far Cheaper Than Smoking
3. The Impact On Nicotine Consumption
4. Why Vaping Is Still A Viable Alternative
5. Other Cessations
6. Is The Tax Really That Bad?
7. Conclusion

1. The New Tax: £2.20 per 10ml Bottle of E-Liquid

The UK government’s decision to implement a tax of £2.20 per 10ml of e-liquid is aimed at increasing government revenue and possibly discouraging vaping, particularly among younger people. While this is a significant increase in cost for both manufacturers and consumers, it's important to contextualise this in terms of the overall price of e-liquids.

Current Retail Prices of E-Liquid

• 10ml Bottles: Retailing at around £2.50, the price of a standard 10ml e-liquid bottle will rise by £2.20 due to the new tax, making it £4.70 per bottle after taxation.
• 100ml Bottles: These larger bottles, which often come with two nicotine shots (usually 10ml x 2), are priced around £15 on average. After the £2.20 tax per 10ml, the tax burden on a 100ml bottle would be £26.40 (for 10 x 10ml + 2 x £2.20), leading to a final price of £41.40 for a 100ml bottle.

Although this increase is notable, it’s essential to consider the broader picture of vaping’s affordability when compared to smoking.

2. Vaping Still Remains Far Cheaper than Smoking

Let’s now compare the new pricing structure of vaping to traditional smoking costs. As of recent reports, the average price for a pack of cigarettes in the UK is around £15.26.

Cost Breakdown: Vaping vs. Smoking

• Cigarettes: An average pack of cigarettes costs £15.26, which contains 20 cigarettes. For a smoker who consumes one pack per day, the monthly cost would be approximately £457.80.

• Vaping: If we take the example of someone using 10ml bottles of e-liquid (and getting through 1 per day, which is incredibly unlikely and typically less), here’s the cost:

  • 7 x 10ml bottle price: £32.90 (after the new tax).
  • Monthly cost for vaping: If you go through approximately 3–4 bottles of e-liquid per month, that would result in a monthly vaping cost of £111–£148.

Savings Comparison

Even after the introduction of the new e-liquid tax, vaping still offers significant savings. While the cost of vaping has risen, it’s still substantially cheaper than smoking, with monthly savings of around £309.80–£346.80.

3. The Impact on Nicotine Consumption: How Much Nicotine Are You Actually Paying For?

It’s worth noting that the 100ml bottle of e-liquid typically includes nicotine shots, which provide the necessary nicotine levels for vapers. A 100ml bottle, when mixed with the standard 20ml of nicotine shots, can yield a final product that provides enough nicotine to satisfy a regular smoker.

Or going down the Nicotine Salts route as per the current market demand the end result would be slightly cheaper, whilst being able to reach higher nicotine concentrations and therefore satisify a wider audience of smokers. Notably, with the taxation to be put in place there are no "tiers" of taxation depending on amount of nicotine, rather, a flat rate.

Despite the rise in taxation, you're still paying for a much more customisable and controlled experience in terms of nicotine consumption. You also have the option of reducing nicotine levels over time, which many smokers transitioning to vaping choose to do.

4. Why Vaping is Still a Viable Alternative: Health and Financial Benefits

One of the primary reasons people make the switch to vaping is the health benefits it offers compared to smoking. Studies consistently show that vaping is far less harmful than smoking traditional cigarettes. While vaping is not risk-free, it is widely regarded as a less harmful alternative to smoking by health organisations such as Public Health England and the NHS.

Moreover, considering the financial aspect:

• Cost of smoking: A smoker’s yearly expense on cigarettes could reach £5,533.80 (assuming one pack per day).
• Cost of vaping: Even with the new tax, a vaper could expect to pay around £1,332 annually.

This represents a significant reduction in expenses, which may serve as a strong motivator for smokers to make the switch.

5. Other Considerations: The Value of Vaping as a Smoking Cessation Tool

Vaping is widely considered an effective smoking cessation tool, helping smokers reduce their dependence on nicotine over time. The new tax may make vaping slightly more expensive, but for those trying to quit, the investment still offers a path to a healthier lifestyle. Moreover, vaping provides smokers with the ability to adjust nicotine strength gradually, making it easier to taper off.

The savings from switching to vaping could also be redirected towards better alternatives, such as healthier lifestyle choices, fitness, or even further reducing nicotine intake through e-liquids with lower concentrations.

6. Looking Ahead: Is the Taxation Really That Bad?

While the £2.20 tax per 10ml of e-liquid may seem concerning initially, the reality is that vaping remains much cheaper than smoking. Even with this price increase, the total cost of vaping per year will still be far lower than the cost of smoking. Additionally, with the variety of e-liquid options available and the flexibility in nicotine strength, vaping can still be a cost-effective and flexible solution for those looking to quit smoking or reduce harm.

The introduction of the tax might be disappointing for many, but it doesn’t change the fact that vaping remains one of the most affordable alternatives to smoking. The new tax also hasn’t diminished the core benefits that vaping offers: significant cost savings, a potentially less harmful experience than smoking, and an option to gradually reduce nicotine dependency.

7. Final Thoughts: A Balanced Perspective on E-Liquid Taxation

Ultimately, the new e-liquid tax should be seen in context. While it adds an additional cost to vapers, it’s unlikely to outweigh the broader benefits of switching from smoking. Vaping still offers a significantly cheaper and healthier alternative to smoking, and for those committed to quitting or reducing smoking, the investment in e-liquid will still be a small price to pay for better health.

While we may not be thrilled about paying a little more for e-liquid, it’s crucial to keep in mind that even with the tax, vaping is still much more affordable than smoking. The savings are considerable, and the health benefits could lead to long-term positive outcomes. It’s safe to say that, in the grand scheme of things, the new tax on e-liquids might not be as bad as it seems.

Sources:

1. Cancer Research UK – "Vaping: what we know and what we don’t about e-cigarettes"
2. National Centre For Smoking Cessation & Training – "E-cigarettes and Vaping: A Guide for Healthcare Professionals"
3. NHS – "Quit Smoking"