According to the British financial website Proactiveinvestors, Citi analysts pointed out that the British government proposed a new excise tax on vape products in the recently announced budget, which has made British American Tobacco Company (BAT) and Imperial Tobacco Brands ( IMB) sees promising momentum.
UK Chancellor of the Exchequer Jeremy Hunt confirmed in his spring budget speech that vape products will be the subject of new taxes after October 2026. The move is aimed at maintaining financial incentives to choose vapes over smoking while increasing tobacco taxes.
The tax framework will be based on nicotine content, using a three-tier system, with charges ranging from £1 to £3 per 10ml, in addition to the existing 20% VAT.
This structured approach aims to more deeply regulate the vape market and align with the government’s health strategy to provide a less harmful alternative to traditional smoking.
Citibank wrote in a brief research note: “While confirmation of plans to tax vapes is not surprising, we believe the regulatory risks/benefits in conjunction with planned bans on disposable vapes are looming in the UK and U.S. Tobacco and Imperial Tobacco have a positive impact.”
The new tax policy provides positive development opportunities for tobacco giants, and also reminds Guutuu vapes and other brands to pay close attention to regulatory changes and make adjustments according to regulations. Under the new tax framework, Guutuu vapes and other brands should focus on product quality and safety, strengthen sales restrictions on minors and provide health promotions to ensure the health and well-being of consumers.
Although it is still unclear how Guutuu vapes will perform in the new tax environment, the introduction of the British vape tax has brought new opportunities and challenges to the entire industry and tobacco giants. In the future development, Guutuu vapes and other brands will face more regulatory requirements, but they will also have the opportunity to meet consumer needs through innovative and high-quality products and stand out in a highly competitive market.
Tags: UK vape tax，Citibank Analyst，Guutuu vape