Finance Bill (Fourth sitting)

Tristan Osborne Excerpts

Committee stage
Thursday 30th January 2025 Public Bill Committees

[James Wild]

The clause is about enabling HMRC to prepare for the introduction of a new excise duty on vaping products before it is formally provided for in law. Amendment 67 would require that, in doing so, HMRC must have regard to the desirability of requiring a digital tax stamp to be applied to e-cigarette liquids.

A million people in England now vape despite never having been regular smokers—a sevenfold increase in just three years—and vaping rates are highest among 16 to 24-year-olds, hence the measures that are going through in the Tobacco and Vapes Bill. Like many of the measures we have discussed in Committee, this new duty was first announced by the previous Conservative Government, and my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt) announced the introduction of an excise duty on vaping products from October 2026.

There is a strong case to take action on the affordability of vapes, while ensuring that there is a significant differential between the duty on vapes and the duty on other tobacco products. After the consultation that the previous Government launched, this Government have announced that they will apply a flat-rate duty on all vaping liquid from October 2026, set at £2.20 per 10 ml of vaping liquid.

Clause 82 simply provides for HMRC to

“prepare for the introduction of a new duty”;

the main provisions will come in future legislation. When new taxes and levies are introduced, it is important to get the implementation right. After consultation, a single flat-rate duty will apply, which should reduce non-compliance and tax avoidance opportunities and be more proportionate both for industry and for HMRC to administer.

[Tristan Osborne (Chatham and Aylesford) (Lab)]

Is the hon. Gentleman aware that the Treasury is already consulting on digital access for vaping products as part of the vaping products duty? It is already going through the process, but we are subject to the progress of that duty in the Tobacco and Vapes Bill Committee just down the corridor.