The UK Plans To Impose A Tax On E-cigarette Liquid. The Retail Price Of A 100-milliliter Bottle Could Jump To £40.

The UK Treasury recently confirmed that it will impose a new tax of 22 pence per milliliter on e-liquid starting from October 2026. This is expected to push the current price of the commonly available 100-milliliter e-liquid from 15 pounds to around 40 pounds.
According to the Treasury document, this tax is a "tax based on quantity", meaning that all e-liquids, regardless of nicotine content, are taxed according to volume. Taking 100 milliliters as an example, the new tax alone amounts to 22 pounds. After adding a 20% value-added tax, the terminal retail price generally exceeds 36.99 pounds, and the high-end series is expected to exceed 40 pounds.
The health minister stated at the briefing that this measure is aimed at "reducing the use of e-cigarettes by non-smokers" and raising funds for the National Health Service (NHS). The Ministry of Finance predicts that this tax will generate approximately 500 million pounds in fiscal revenue annually.
The market reaction was swift. The British Independent E-cigarette Association warned that a sharp price increase might force consumers to return to traditional cigarettes. Currently, the average price of a pack of 20 cigarettes is about 16.6 pounds. If the price of e-liquid doubles, the price gap between the two will significantly narrow. Additionally, the association is concerned that small retailers will face a wave of closures due to a loss of customers.
The policy has been in place for less than 16 months until the full ban on disposable e-cigarettes on June 1, 2025. The industry is currently under dual pressure. Industry insiders disclosed that some merchants have begun to stockpile inventory, and on social platforms, there are also "European importers" and "self-mixed oil" solutions to circumvent the ban. The regulatory authorities have expressed "ongoing monitoring" of this situation.
The Ministry of Finance stated that it will continue to negotiate with the industry and public health groups in the next 12 months, and the final tax rate and implementation details will be based on the fiscal bill in the spring of 2025.