Ecigone Founder Questions Logic of Taxing Nicotine Free E Liquids
The UK government’s upcoming vape tax has drawn criticism from one of the country’s leading online vape shops, who argue the policy penalises vapers trying to quit nicotine entirely.
Under rules taking effect in October 2026, a flat £2.20 per 10ml tax applies to all e liquids regardless of nicotine content. A bottle containing 20mg nicotine salts costs the same in tax as a bottle containing zero nicotine. For vapers working toward complete nicotine freedom, this removes any financial benefit from reaching their goal.
Shane Margereson, founder of award winning retailer Ecigone, believes this approach undermines public health objectives. “The whole point of stepping down nicotine is to break free from addiction. Taxing nicotine free products at the same rate as addictive ones sends completely the wrong message.”
Join The European Business Briefing
New subscribers this quarter are entered into a draw to win a Rolex Submariner. Join 40,000+ founders, investors and executives who read EBM every day.
SubscribeHow the Tax Works
The new vape duty adds £2.20 to every 10ml of e liquid sold in the UK. Once VAT is applied on top, the actual increase reaches £2.64 per bottle.
This applies universally. High strength nic salts at 20mg face the same tax as 10mg, 5mg, 3mg, and 0mg options. The nicotine content makes no difference to the amount charged.
For context, a vaper currently paying £2.99 for a 10ml bottle of nicotine free e liquid will see that price jump to around £5.63 after the tax takes effect. The percentage increase hits zero nicotine users just as hard as those still dependent on nicotine.
Why This Matters for People Quitting
Most smoking cessation guidance recommends gradually reducing nicotine strength over time. Vapers typically start at 20mg or similar, then step down through 10mg, 5mg, 3mg, and eventually zero.
Price currently reinforces this journey. Lower nicotine options often cost less. Zero nicotine e liquids carry no addiction risk and feel like a reward for reaching the finish line.
The new tax eliminates this incentive structure. Reaching zero nicotine no longer saves money. The financial motivation to complete the final step disappears.
“We hear from customers all the time who use cost as part of their motivation,” Margereson explains. “They set targets. Get to 5mg and save this much. Get to zero and save even more. That psychology matters. Remove it and people plateau instead of finishing.”
The Groups Most Affected
The flat rate nature of the tax hits lower income vapers hardest. Someone on a tight budget faces the same £2.64 increase whether they’re addicted to nicotine or completely free of it.
Young adults who switched from smoking to vaping lose incentive to take the final step. Pensioners on fixed incomes see their costs rise regardless of their nicotine choices. Anyone who made the effort to reach zero nicotine gets no recognition in their wallet.
The commercial effects ripple outward too. Retailers have less reason to stock extensive zero nicotine ranges. Manufacturers have less incentive to develop new nicotine free flavours and products. Innovation in the quit journey space slows down.
What Ecigone Proposes Instead
The solution Margereson suggests is straightforward. Exempt nicotine free e liquids from the vape duty entirely.
“If there’s no nicotine, there’s no addiction,” he argues. “Calling it an addiction tax and then applying it to non addictive products is contradictory. It doesn’t hold up to basic logic.”
This wouldn’t mean zero regulation for nicotine free products. Age restrictions, advertising rules, and product safety standards would still apply. The change would only affect taxation.
“We’re not asking for a free pass on everything,” Margereson clarifies. “Regulate the products properly. Check ages. Control marketing. All of that makes sense. But don’t financially punish people for successfully quitting nicotine.”
How Other Countries Handle This
The UK isn’t the first country to tax vaping products, and others have taken different approaches to nicotine free options.
Germany applies reduced tax rates to e liquids without nicotine, recognising the difference between addictive and non addictive products. Italy exempts nicotine free e liquids from vape taxation entirely. Both countries report that this approach supports rather than hinders quit attempts.
“Other governments have figured this out,” Margereson notes. “They understand that tax policy can either help people quit or make it harder. The UK is choosing the harder path for no obvious reason.”
The Timeline and What Could Change
The October 2026 implementation date gives time for amendments, but the window is narrowing. Parliamentary process moves slowly, and changes to tax legislation require significant political will.
Margereson believes public pressure could make a difference. Ecigone has served over half a million customers and won Best Online Vape Store UK for five consecutive years. The company is using its platform to raise awareness of the issue.
“Politicians respond to constituents,” he says. “If enough vapers contact their MPs and explain how this affects real quit journeys, there’s a chance of change. Silent acceptance guarantees nothing happens.”
What Vapers Can Do
Individual vapers can contact their local MP to share concerns about the equal taxation of nicotine free products. Personal stories carry weight. Explaining how price incentives helped your own quit journey makes the issue concrete rather than abstract.
Industry bodies and advocacy groups are also pushing for amendments. Supporting these efforts through membership or public backing adds collective pressure.
“This affects millions of people,” Margereson emphasises. “Every vaper who planned to quit nicotine completely now faces a tax that treats their success the same as continued addiction. That’s worth speaking up about.”
The Bigger Picture
Beyond individual finances, the policy raises questions about government priorities. Public health messaging encourages smokers to switch to vaping as a less harmful alternative. Quitting nicotine entirely is presented as the ideal end goal.
Taxing that end goal identically to continued nicotine use contradicts the message. It tells vapers that reaching zero nicotine earns no recognition, no reward, and no financial benefit.
“Good policy aligns incentives with desired outcomes,” Margereson argues. “If we want people to quit nicotine, we should make quitting nicotine financially attractive. This tax does the opposite.”
The vaping community now watches to see whether common sense adjustments emerge before October 2026, or whether millions of vapers lose their final financial motivation to become completely nicotine free.
