Citibank: New E-cigarette Tax may Reflect Well on Tobacco Giants

Regulations by 2FIRSTS.ai

Mar.08.2024

Citibank: New E-cigarette Tax may Reflect Well on Tobacco Giants

Citi analyst predicts positive growth for British American Tobacco and Imperial Brands with new e-cigarette tax proposed in UK budget.

According to a report from the UK financial website Proactiveinvestors, analysts at Citibank have noted that the UK government has proposed a new consumer tax on e-cigarette products in its recent budget. This development has created optimism for British American Tobacco (BAT) and Imperial Brands (IMB) for potential growth opportunities.

In his spring budget speech, British Chancellor Jeremy Hunt confirmed that starting in October 2026, e-cigarette products will become the main focus of a new tax. This move aims to maintain economic incentives for choosing e-cigarettes over smoking, while also increasing tobacco taxes.

This tax framework will be based on nicotine content and will use a three-tier system. In addition to the existing 20% value-added tax, fees will also be levied in the range of 1-3 pounds per 10 milliliters.

This structured approach aims to more deeply regulate the e-cigarette market, in coordination with the government's health strategy, to provide a less harmful alternative to traditional smoking.

Citibank wrote in a brief research report: "While the confirmation of plans to tax e-cigarettes is not surprising, we believe that the combination of this with plans to ban disposable e-cigarettes is having a positive impact on regulatory risks and returns for British American Tobacco and Imperial Brands."

References:

[1] Imperial Tobacco, BAT: Vape tax positive for tobacco giants, says US bank

Also Read:

[1] UK Plans to Implement Additional Tax on E-Cigarettes in 2026

[2] UK E-cigarette Tax Plan Supported by BAT CEO

[3] Potential Impacts of Proposed E-cigarette Tax in UK

[4] Virginia State Legislation Proposes New E-cigarette Regulations and Taxes

[5] UK Government Considering Tobacco Tax Increase, Raising Cost of a Pack to £16

#Europe #Legislation #E-liquids #United Kingdom #E-cigarette Taxes #E-cigarette #E-cigarettes and Tobacco

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

AIR’s Shisha Brand Al Fakher Launches New Pod-Based Vape in Germany, Touting Non-Ceramic Atomization Technology

AIR’s shisha brand Al Fakher has launched its rechargeable pod-based vape Crown Switch in Germany, featuring Coldstream technology and claiming low-temperature vaporization without ceramic or metal heating elements. The device is now available on shisha-world, while AIR is simultaneously pushing ahead with its plan to go public on Nasdaq via a SPAC merger.

Nov.20 by 2FIRSTS.ai

Co-op Faces Backlash Over Vape Promotion Strategy Post-Cyberattack

The Guardian reports that UK retailer Co-op is ramping up vape promotions to recover sales lost after an April cyberattack. Internal documents cite a £1M weekly sales gap and 100,000 fewer transactions. Staff say the move contradicts Co-op’s “ethical retail” image, as the government prepares to ban vape ads under the Tobacco and Vapes Bill.

Oct.28 by 2FIRSTS.ai

Number of Vapers in Britain Surpasses Smokers for the First Time, Government Tightens Nicotine Regulations

For the first time, more people in Britain now vape than smoke. According to the Office for National Statistics (ONS), 10% of adults (5.4 million) regularly use e-cigarettes compared with 9.1% (4.9 million) who smoke cigarettes. The government credits vaping for the decline in smoking but plans tougher rules through the Tobacco and Vapes Bill, including a generational smoking ban and restrictions on nicotine pouch flavours, packaging, and sales.

Nov.05 by 2FIRSTS.ai

BAT appoints Matthew Wright as Independent Non-Executive Director, effective November 1, 2025

Matthew Wright appointed as independent non-executive director of British American Tobacco, effective November 1, bringing extensive international executive experience.