Jeremy Hunt set to introduce vape tax in budget: report

Jeremy Hunt is expected to announce a new levy on vaping in next week’s budget, The Times has reported.

The chancellor would also cut employee national insurance by 1 percentage-point, according to the report.

The new tax would be levied on the vape liquid, to be paid on imports and by manufacturers, with higher levels of tax for products with more nicotine.

There would also be a one-off increase in tobacco duty to ensure that vaping remains a cheaper alternative, with the two measures expected to raise more than £500 million a year between them by 2028-29, the report said.

The tax is modelled on similar schemes across Europe, with Germany imposing a €1.60 tax on every 10ml of vape liquid and Italy levying €1.30. The EU is planning a bloc-wide vaping levy.