Mar 6, 2024
British American Tobacco chief embraces new UK vape tax
The chief executive of British American Tobacco has endorsed the UK's plans for a vaping tax, claiming the cigarette maker has learned to "Love regulation". Any increase in tobacco duty will be higher for cigarettes than for vapes to ensure that the 4.7mn British adults who vape are not incentivised to return to smoking, according to a Treasury official. A vaping tax would allow the government to exercise "Better control" of the industry, said Marroco, who claimed that illegal products comprised up to a third of the UK vaping sector and are likely stealing market share from BAT. BAT's Vuse vaping product has faced stiff competition from Chinese-owned brands Elf Bar and Lost Mary in drawing UK vapers. According to the proposals, the chancellor will announce a three-tiered vape tax aimed at reducing the affordability of vapes for underage users - it is illegal to sell vapes to anyone under the age of 18. Liquids with the equivalent nicotine content of one cigarette or less will face a tax rate of £2 per 10ml, while vape fluid with more than a cigarette taxed at £3 per 10ml. Vaping products are already subject to a 20 per cent VAT tax rate, while pharmaceutical products designed to stop people from smoking face a lower VAT rate of just 5 per cent.
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