Tobacco: Excise Duties
The question
To ask the Chancellor of the Exchequer, pursuant to the answer of 12 February 2026 to UIN 111208, whether tobacco duty increases since October 2024 and the application of the RPI+2% tobacco duty escalator will preserve the retail price differential between tobacco products and vaping products without the £2.20 one-off increase due to take effect on 1 October 2026.
Answered by Dan Tomlinson
To discourage non-smokers and young people from taking up vaping, and to raise revenue, the government is introducing Vaping Products Duty with effect from 1 October 2026. This will be accompanied by an equivalent one-off increase in Tobacco Duty, to preserve the price differential and maintain the financial incentive for existing smokers to switch from tobacco to vaping.
Further information can be found in the Tax Information and Impact Note published at Budget which can be found here:
Changes to tobacco duty rates from 26 November 2025 and 1 October 2026 - GOV.UK
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