Vape Tax Budget

24 January 2025, 12:09 BST

Vape Tax Budget: The Second Biggest Thing Since TPD 2017

October 2026 is just around the corner and with it comes the much-anticipated introduction of the vape tax, a financial storm for the vaping industry and its users. Dubbed the second most monumental event in vaping history since the Tobacco Products Directive (TPD) of 2017, this new legislation promises not just a tax but a complete shake-up of how the industry operates. Buckle up, it’s about to get cloudy in here (pun intended).

When Does the Vape Tax Start?

Mark your calendars because the vape tax officially comes into effect on 1st October 2026. This is when every puff you enjoy will come with a little more guilt, not from nicotine but from your wallet. Vaping will no longer just be about flavour and satisfaction; it’ll also involve some quick mental maths to figure out how much you’re spending per millilitre.

While October might seem like a far-off deadline, businesses across the vaping sector are already sweating bullets, gearing up to navigate this labyrinthine tax system. Vapers, on the other hand, might want to start budgeting or stocking up.

The countdown to October 2026 is expected to be a wild ride for vape companies. Initially, turnover is set to skyrocket as vapers scramble to buy in bulk before the tax lands. Think of it as the Great Vape Panic of 2026. But as soon as the clock strikes October, don’t be surprised if vape shops resemble ghost towns. The post-tax period could bring a quiet lull as customers adjust to the new pricing landscape and potentially, new products designed to bypass the tax.

The Technical Headache for Vape Companies

Behind the scenes, vape companies are likely drowning in paperwork as they figure out how to comply with the tax regulations. From learning how to implement the tax system to modifying pricing strategies and updating point-of-sale systems, it’s a logistical nightmare. And, of course, these additional costs will inevitably be passed on to the end user. So when your favourite e-liquid jumps up in price, you can thank bureaucracy for the added kick to your throat hit.

The Birth of Longfill E-Liquids

Every 10ml of e-liquid will soon face a £2.20 tax under the new rules. That means buying six 10ml bottles to make up 60ml could cost £28.20, compared to the pre-tax price of around £15. Enter longfills, the industry’s new knight in shining armour.

A longfill setup works differently. Instead of pre-mixed e-liquid, customers buy a larger bottle containing 20ml of flavour concentrate. Nicotine shots are added to make the finished product. Let’s crunch the numbers:

• Longfill setup: £5.99 (60ml bottle with 20ml concentrate) + £4 (nicotine shots) + £8.80 (tax) = £18.79 total.

• Pre-mixed e-liquid: £28.20 for 60ml under the new tax rules.

That’s a £10 saving per 60ml, a no-brainer for cost-savvy vapers.

Loopholes and Industry Adaptation

We spoke with Juicy Vapes, who predict that, much like the TPD of 2017 gave rise to shortfill e-liquids, the vape tax will inspire the growth of longfills. In 2017, shortfills emerged as a workaround for the TPD’s nicotine regulations, dominating the UK market for years. Juicy Vapes believes the same creativity will now turn to longfills, a loophole already utilised in countries like Greece. Whether this will be a seamless transition or another uphill battle remains to be seen but one thing’s for sure, the vaping industry thrives on ingenuity.

Final Puff

The vape tax is set to reshape the landscape of vaping, leaving businesses scrambling and consumers bracing for impact. However, history shows the industry’s knack for finding clever workarounds. Whether longfills become the next big thing or new loopholes emerge, one thing is certain: vaping will never be the same. As October 2026 approaches, get ready for higher prices, innovative solutions and plenty of drama.