Five-Time Award Winner Ecigone Highlights Major Flaw in Proposed Vaping Duty
The UK Government’s planned vaping tax faces criticism from one of the country’s leading online vape retailers over its treatment of nicotine-free products.
Shane Margereson, who founded UK online vape shop Ecigone in 2014 and has since won multiple industry awards, argues that charging the same duty on zero-nicotine e-liquids as nicotine-containing products undermines public health objectives.
The Core Issue
Under current proposals, all vaping products face identical taxation regardless of nicotine content. This means a bottle of 0mg e-liquid costs the same in tax as one containing 20mg nicotine.
“We’re essentially penalising people for making healthier choices,” explains Margereson. “It’s comparable to putting the same tax on alcohol-free beer as regular beer. Where’s the logic in that?”
The taxation structure, set to begin in October 2026, adds £2.20 per 10ml plus VAT to all e-liquids. No distinction exists between nicotine strengths.
Breaking the Reduction Path
Most successful ex-smokers follow a clear pattern: starting at higher nicotine levels then gradually reducing to zero. This stepping-down approach has helped millions quit.
Margereson points out the proposed tax removes financial incentive from this journey. “Former smokers typically start at 20mg, drop to 10mg, then 5mg, before reaching zero. But why make that final step if it costs exactly the same?”
The retail data supports this concern. Sales of 0mg products have remained flat while lower-nicotine options (5mg and 10mg) show steady growth. Price parity removes motivation for the final transition.
Unintended Consequences
“You might assume retailers would celebrate sustained nicotine sales,” Margereson notes. “But that’s short-term thinking. We want customers to succeed in quitting, not remain dependent forever.”
The lack of differentiation affects manufacturers too. With no price advantage for zero-nicotine products, companies have less reason to develop and promote them. This creates a market failure where supply doesn’t meet potential demand.
Public health implications extend beyond individual users. The NHS spends billions annually on smoking-related illnesses. Supporting complete nicotine cessation through tax incentives could generate significant healthcare savings.
A Simple Solution
Ecigone proposes exempting zero-nicotine vaping products from the new duty. This creates clear financial motivation for users to complete their quitting journey.
“The message becomes straightforward,” Margereson explains. “Reduce your nicotine, reduce your costs. Reach zero, pay no vaping tax. That’s powerful motivation aligned with public health goals.”
Revenue impact would be minimal. Zero-nicotine products represent less than 5% of current market sales. The potential health benefits far outweigh lost tax income.
International Precedents
Several European countries already differentiate taxation based on nicotine content. Germany taxes nicotine-free e-liquids at lower rates. Italy exempts them completely. These markets show continued growth without youth uptake concerns.
The evidence suggests graduated taxation encourages harm reduction without creating new problems. UK policy could learn from these examples.
Industry Responsibility
Margereson emphasises this isn’t about avoiding regulation. “We support strong controls on youth access, advertising restrictions, and product standards. This is about making regulation work effectively.”
Ecigone has consistently advocated for responsible industry practices, including age verification, clear labelling, and supporting customers reducing nicotine dependency.
“Smart regulation distinguishes between different risk levels,” he adds. “Zero-nicotine products carry no addiction risk. Policy should reflect that reality.”
Moving Forward
The vaping industry awaits final tax implementation details. Margereson hopes policymakers will reconsider the zero-nicotine position before October 2026.
“Small changes can create big impacts. Exempting 0mg products sends the right message: we support your journey to becoming nicotine-free. Current plans send the opposite signal.”
He calls for dialogue between government, health experts, and responsible retailers to refine the approach. “Nobody wants weak regulation. We want effective regulation that actually helps people quit.”
The Broader Context
UK smoking rates continue declining, partly thanks to vaping as a cessation tool. Public Health England maintains vaping is 95% less harmful than smoking. Tax policy should support, not hinder, this progress.
“Every barrier to reaching zero nicotine is a barrier to complete cessation,” Margereson concludes. “If the goal is reducing smoking harm, then zero-nicotine products deserve different treatment. It’s that straightforward.”
For retailers like Ecigone, the issue transcends business interests. It’s about supporting the millions of UK vapers trying to become completely nicotine-free.
The question remains whether policymakers will recognise this distinction before implementing a tax structure that could inadvertently keep people dependent on nicotine longer than necessary.
About Ecigone: Founded in 2014, Ecigone.co.uk has won “Best Online Vape Store UK” five times through customer voting. The company has served over 500,000 customers nationwide from their Chesterfield headquarters and being advocates for nicotine reduction and having bestselling brands like Elux Liquids Elfliq and Bar Juice all the best price in the UK at only £1.99 this shows just how passionate they are about vapers taking the reduction route
