UK Government Considers Reducing VAT on E-cigarettes

The Local Government Association, representing councils in England and Wales, has stated that current laws only permit a 5% tax rate on "products designed to help people quit smoking". The UK government has indicated that, given existing scientific evidence showing that e-cigarettes can indeed assist with smoking cessation, it intends to lower the VAT on e-cigarette products to 5%.

David Fothergill, Chairman of the LGA Community Wellbeing Board, stated that there is growing evidence to support the use of e-cigarettes and other specialized forms of smoking cessation in helping people quit smoking. This reduces the risk of harmful diseases and deaths, as well as alleviating other pressures on healthcare services.

At the same time, in October of last year, the regulatory body for pharmaceutical and healthcare products announced that any approved electronic cigarette products would only be prescribed by doctors. "Whether it is the COVID-19 vaccine we have developed or the innovative public health measures we have implemented to reduce the risk of serious illnesses for people, this country remains a global leader in the healthcare field," said Health Secretary Sajid Javid.

Opening the door to NHS-approved e-cigarettes could potentially address the significant disparities in smoking rates nationwide and help people quit smoking in any location or circumstance, Javid said. He recently faced criticism for suggesting a ban on smoking outside of pubs and restaurants.

A recent survey has revealed that over a third of the public support the provision of e-cigarettes on the NHS. The survey by GoSmokeFree.co.uk questioned 1,200 respondents in order to gauge their opinions on this development. Considering the smoking cessation potential of these products, 35% of people approve of them being available on prescription. With regards to the risks associated with conventional tobacco cigarettes, a further 38% of people stated that they believe smoking should be banned altogether, whilst 45% feel that local anti-smoking laws are not strict enough.

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