The UK Plans To Impose A New Tax On E-cigarettes, But The Local Government Association Urges To Reduce The Tax Rate

Recently, according to the British media Politico, although the British government has approved electronic cigarettes as a tool to assist smoking cessation, in order to solve the problem of the popularity of disposable electronic cigarettes among British minors, the government is considering imposing a new tax on electronic cigarette products. The proposal also includes further requirements for packaging, marketing and taste, but it is unlikely to completely ban disposable electronic cigarettes.

In 2022, a report assessing whether England could become a smoke-free area by 2030 attracted widespread attention in the UK. It is understood that some specific regulations in this proposal are intended to solve the problems pointed out in the report.

Britain has taken many comprehensive measures to prevent minors from smoking. A spokesman for the UK Department of Health and Social Health said. "The law protects children from the influence of electronic cigarettes by restricting the sale to people under 18 years of age, limiting the nicotine content, the size of cigarette bombs, labeling requirements and advertising restrictions. The advertising of electronic cigarettes and their components prohibits any elements that may attract people under 18 years of age, such as well-known characters or celebrities."

Just last week, Chris Whitty, the chief medical officer of England, told the Committee of the House of Commons that electronic cigarette marketing for children "has had unknown consequences for intellectual development", and said that the goal setting was "shocking". He warned that the proportion of children smoking electronic cigarettes had doubled in the past few years. To some extent, this has increased the attention of public opinion on this issue, which has prompted the British government to provide solutions in the short term.

But on the other hand, there are also calls to reduce the value-added tax on e-cigarettes in the UK. In 2022, LGA (Local Government Association) urged the British government to reduce the value-added tax on e-cigarettes from 20% (the UK incorporated e-cigarettes into traditional tobacco management) to 5%, so as to keep it consistent with the tax rate of conventional NRT (nicotine replacement therapy) such as nicotine gum and patches.

LGA, representing the Parliament of England and Wales, said that the current 5% tax rate allowed by the law only applies to "medical products designed to help people stop smoking". The association added that in view of the existing scientific evidence, electronic cigarettes can help people quit smoking, so the tax rate of 5% should also be applied.

It is reported that the British government announced that it would build England into a "smoke-free area" by 2030. Scotland will achieve this goal before 2034. Northern Ireland and Wales, which belong to the United Kingdom, have not yet set a date.