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“Government Considers New Vaping Tax in Budget Announcement”

The UK government is considering implementing a new tax on vaping products in the upcoming Budget announcement. Currently, vaping products are subject to Value Added Tax (VAT), but they do not have a separate levy like tobacco products. The potential increase in tobacco duty aims to ensure that vaping remains a cheaper alternative. The government is concerned that the affordability of vaping makes it more accessible to young people and non-smokers.

The idea of a vaping tax was first mentioned in November’s King’s Speech, where the government highlighted the significant difference in tax rates between vaping and tobacco. According to reports from The Times, the proposed duty will be imposed on the liquid in vapes, with higher tax rates for products containing more nicotine.

The Treasury’s analysis suggests that the new vaping tax, combined with the rise in tobacco duty, could generate approximately £500 million annually. Last year, the separate tax on tobacco products was increased by 2% more than inflation as part of the Autumn Statement. Several European countries already have e-cigarette taxes, and the European Commission plans to introduce a minimum level across the EU.

This development follows the recent announcement of plans to ban disposable vapes in the UK and impose restrictions on flavors and packaging. The ban is expected to be implemented nationwide in early 2025, with retailers given six months to comply once the timing is confirmed. The government also intends to increase fines for retailers found selling vapes to individuals under the age of 18, which is currently illegal.

The upcoming Budget announcement will reveal the government’s tax and spending plans for the coming year amidst sluggish economic growth. Chancellor Jeremy Hunt has expressed his desire to lower taxes, potentially making this the last Budget before a general election. However, the Institute of Fiscal Studies has warned that the UK is in a “poor position” to do so, as the government is only just meeting its target of reducing national debt as a share of national income within five years.

The introduction of a new vaping tax has sparked debate among the public. The BBC encourages individuals to share their experiences and opinions by emailing haveyoursay@bbc.co.uk or reaching out via WhatsApp or Twitter.

As the government considers implementing a new vaping tax in the upcoming Budget announcement, it aims to address concerns about the accessibility of vaping products to young people and non-smokers. The proposed tax, which would be levied on the liquid in vapes, is expected to generate significant revenue and align the UK with other European countries that already have e-cigarette taxes. This development follows plans to ban disposable vapes and increase fines for retailers selling vapes to underage individuals. However, the feasibility of lowering taxes in the current economic climate remains uncertain. The public is encouraged to share their thoughts on the potential vaping tax with the BBC.

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