Vapouround magazine VAPOUROUND MAGAZINE OCTOBER ISSUE19 - Page 153

UK sector news: tax, insurance, e-liquid sales T he UK treasury has confirmed that it has “no current plans” to introduce a tax on vaping products. The information came in a reply by Robert Jenrick, exchequer secretary to the treasury, to a letter from the UK Vaping Industry Association (UKVIA). Vapers classed as smokers Vapers in the UK are having to pay higher insur- ance premiums because insurance companies are still classifying them as smokers. An investigation by ECigIntelligence has found the overwhelming majority of British insurance firms In it Jenrick agreed that vaping had a role to play ask potential life and health insurance customers in reducing smoking and that this would lead to an whether they have smoked or used a nicotine overall cost-saving to the National Health Service. replacement (NRT) product in the last 12 months. He added that the treasury was also aware of the financial contribution made by the e-cigarette sector. “I recognise the contribution the vaping industry If they answer “yes”, they are classified as smokers, which means their premium can cost twice as much as for those who say “no”. makes to the economy in terms of job and revenue Insurance expert Andrew Wibberley told to the Exchequer and welcome the fact the UK has ECigIntelligence there has been “some confusion a world leading vaping industry,” Jenrick said. about whether [e-cigs] were a temporary thing to Jenrick, who is also a Conservative MP, declined a help people not smoking, or whether they were a meeting with the UKVIA due to “diary pressures”. permanent change. The challenge for insurers is But he added: “I would however encourage you to deciding which one. It’s a market that will change engage with my officials should you wish to at some point.” discuss any of the issues raised in your letter.” ECigIntelligence remains sceptical that an e-cig tax was in fact being considered. It is more likely Shaking up the market More than a third of the e-liquid revenue in UK vape stores is generated by 10ml ready-to-use that discussions of new tax categories for novel e-liquid products, but shake and vape and multi- to bacco products such as heat-not-burn (HnB) pack products have gained ground since the EU’s consumables were misinterpreted by reporters as Tobacco Products Directive (TPD) came into British including e-cigarettes. law, a new ECigIntelligence survey reports. About ECigIntelligence ECigIntelligence is the leading provider of detailed global market and regulatory analysis, legal tracking, and quantitative data for the e-cigarette, heated tobacco and combustible- alternatives sector worldwide. Customised research and consultancy are also available. We offer tools to navigate the complex market and regulatory landscape through inde- pendent, analytical and actionable data insights, in-depth country reports, regulatory trackers and legal analysis. We also publish for the European CBD sector.