(Alliance News) - UK Chancellor Jeremy Hunt may announce a new UK tax on vapes as part of his budget next week, Bloomberg reported on Tuesday
The potential move on March 6 would come as part of a wider package that aims to reduce overall taxation, with Hunt still debating whether the headline announcement will be to lower income tax or to cut national insurance.
Shares in Imperial Brands PLC, which owns the blu vape brand, the Pulze and iD heated tobacco system, and the Zone X and Skruf nicotine pouches, fell 4.3% to 1,740.50 pence in London. It was the worst performing stock in the FTSE 100.
Shares in British American Tobacco PLC, which owns vape brands such as Alto, Solo, Ciro and Vibe, fell 0.3% to 2,364.50p.
Bloomberg reported the chancellor told fellow Conservative MPs late on Monday that next week's announcement will see him pursue "smart tax cuts" that drive growth and reward work.
https://www.bloomberg.com/news/articles/2024-02-27/hunt-considers-new-uk-vaping-tax-at-budget-to-protect-children
The levy on vapes - which could raise GBP500 million by 2028-29 - would apply to both manufacturers and importers and is being considered as part of UK Prime Minister Rishi Sunak's efforts to crack down on vaping and smoking to protect children’s health.
Sunak made a ban on smoking for future generations one of the flagship policy announcements of his premiership.
In January, the prime minister also said he would ban disposable vapes in order to protect children.
If the new tax on vapes is confirmed, tobacco duty would then be raised to ensure vaping is still cheaper than smoking, Bloomberg said.
By Jeremy Cutler, Alliance News reporter
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Imperial Brands (IMB)
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