Rogue traders selling illegal vapes will face fines of up to £10,000 and potential prison sentences under sweeping new measures that the government is set to announce soon in Wednesday’s Budget.
The package includes expanded powers for HMRC and Border Force, alongside the introduction of a digital tax-stamp scheme requiring all vapes sold in the UK to carry a secure code, such as a QR mark, allowing enforcement teams and consumers to verify legitimate products instantly.
Legitimate businesses will be able to register for the new scheme from April 2026 before it becomes compulsory in the autumn. They will also have six months to sell any unstamped stock.
The government said the measures were part of plans to protect Britain's high streets, amid a sharp rise in the number of vape shops and growing concerns over illicit products fuelling youth access and undermining law-abiding retailers.
The move follows this summer’s ban on disposable single-use e-cigarettes, introduced to curb littering and teen vaping.
Meanwhile, the ongoing Tobacco and Vapes Bill, currently going through parliament, will outlaw vape advertising and sponsorship and introduce powers to regulate flavours, packaging, display, and other in-store controls.
Under the new expected measures, enforcement agencies will be able to seize illegal vapes both inland and at the border, with ministers promising to “disrupt criminal networks behind black market vapes”.
Consumer health bodies broadly welcomed the move.
Hazel Cheeseman, chief executive of Action on Smoking and Health (ASH), said aligning vape penalties with tobacco enforcement “sent the right message”, adding that the new excise tax would help tackle youth vaping while keeping products “affordable for adult smokers who want to quit”.
John Herriman, chief executive of the Chartered Trading Standards Institute, told the BBC the involvement of HMRC and Border Force would add “significant weight to enforcement activity” and help tackle a problem that has been “a real scourge of the high street”.
Commenting on the reports, Eve Peters, director of government affairs for ELFBAR in the UK, told Asian Trader, "We fully back the forthcoming excise tax. Together with licensing, the tax should reduce the thriving illicit market by bringing it under the remit of HMRC.
"Our support is contingent on ensuring the continued affordability and accessibility of vapes to adult smokers seeking to quit cigarettes without inadvertently directing them to unregulated products or back to tobacco."