The Vape Duty is coming, it’s worse than we all feared.

The End of an Era? How the UK Vape Duty Threatens the Shortfill Market and Consumer Choice

The UK's ambition for a "smoke-free generation" has long been a source of pride for the vaping community, with the country leading the way in harm reduction. However, the new Vaping Products Duty (VPD), set to be implemented in October 2026, is causing a wave of alarm. This isn't just a simple tax; it's a policy that many in the industry believe will dismantle the thriving shortfill market, force countless businesses to close, and ultimately restrict the very consumer choice that has made vaping a successful alternative to smoking.

A Market Under Threat: The Shortfill Dilemma

The shortfill market, which allows vapers to add their own nicotine shots to larger bottles of nicotine-free e-liquid, has been a cornerstone of consumer choice and affordability. The new flat-rate duty of £2.20 per 10ml of e-liquid will fundamentally change this. For every 10ml of liquid, an additional tax will apply, whether it contains nicotine or not. This policy disproportionately affects shortfills, which contain large volumes of nicotine-free liquid.

This single tax will be a death knell for many of the independent manufacturers and retailers who specialize in shortfills. These small businesses have been the engine of innovation and variety in the UK market, offering a vast array of flavors and products that cater to every taste. By making their core products economically unviable, the government risks wiping out this diverse and dynamic segment of the industry, leaving consumers with fewer options and a less satisfying alternative to smoking.

The Real Cost: A Breakdown of Our Prices

Let's look at how this tax will directly impact the prices consumers will  pay,

• 10ml E-liquid: A bottle that currently costs £4.99 will have a duty of £2.20 added to it. The 20% VAT is then applied to the duty, adding an extra £0.44. The new price will be approximately £7.63, a 53% increase.

• 50ml Shortfill: A 50ml shortfill, which requires a 10ml nicotine shot, is currently £8.99. The duty on the 50ml shortfill will be £11.00, plus £2.20 for the nic shot, for a total duty of £13.20. With VAT on the duty (£2.64), the new total price will be around £24.83. This represents a massive 176% increase.

• 100ml Shortfill: A 100ml shortfill currently priced at £12.99 will incur a duty of £22.00. Adding the VAT on the duty (£4.40), the new price will be approximately £39.39. This is a shocking increase of over 200%.

These calculations reveal a clear and devastating impact. The cost of a shortfill will more than double, making it a luxury that many vapers simply won't be able to afford. The very products that offered the best value and variety will become the most expensive, creating a powerful disincentive to continue vaping.

The Human Cost: Closures and Reduced Choice

The inevitable consequence of these price hikes will be a decline in consumer demand, leading to the closure of many independent vape manufacturers and retailers. These businesses have invested years in building a market that successfully helps people quit smoking, only to be hit with a tax that makes their products unaffordable. This isn't just about financial loss; it's about the loss of jobs, passion, and expertise that has driven the UK's reputation as a leader in vaping.

Furthermore, this tax stifles consumer choice. The shortfill market is synonymous with a huge range of flavors and options. By making these products prohibitively expensive, the government is effectively forcing vapers into a narrower selection of pre-filled pods or 10ml bottles, which are less cost-effective for heavy users. This will make it harder for vapers to find products that keep them away from cigarettes, potentially driving them back to a more harmful habit.

The Vaping Products Duty, while well-intentioned in its goal to protect young people, is a blunt instrument that seems to ignore the realities of the adult vaping market. By crippling the shortfill sector and putting a huge financial burden on consumers, the government risks undoing years of public health progress and destroying a legitimate industry in the process. The real cost of this duty won't just be measured in pounds and pence, but in closed businesses, lost jobs, and the potential for a new generation of ex-smokers to return to their old habit.

Take a look for yourself at the Governments proposal and see what you think.

Thank you to Andy W for bringing this to my attention, there is now a petition running on the Government website to ask for a review to this unfair and ill thought out tax on us all. Sign here.