UK Plans to Implement Additional Tax on E-Cigarettes in 2026

UK Finance Minister Jeremy Hunt plans to impose additional taxes on e-cigarettes starting in October 2026 to raise prices and discourage non-smokers from smoking. The government will also raise tobacco taxes on disposable cigarettes to maintain the price advantage of e-cigarettes over traditional cigarettes. The taxation could make it difficult for small businesses to compete, benefiting large tobacco companies like British American Tobacco. British American Tobacco UK supports a "low" consumption tax on nicotine e-liquids in e-cigarettes, but believes it would be difficult to enforce. The UK government has been forced to consider stricter control measures due to the rapid increase in non-smokers and young people using e-cigarettes.