Ministers consider new vaping tax at Budget next week

The government is considering announcing a new tax on vapes at the Budget next week.

Currently, vaping products are subject to VAT - but unlike tobacco, they are not also subject to a separate levy.

Tobacco duty could also increase at the Budget, to ensure that vaping remains cheaper.

Ministers fear that the relatively cheap cost of vaping means that the products are more accessible for young people and non-smokers.

The government first said it was considering a vaping levy at November's King's Speech, citing a "significant differential" with tax on tobacco.

According to the Times, which first reported the story, the new duty will be levied on the liquid in vapes, with higher tax rates for products with more nicotine.