A VAPING tax which is expected to cost around £400,000 to implement over the next four years could generate millions for States coffers, the Treasury Minister has said.
Responding to questions from the JEP, Deputy Elaine Millar said it is forecast that income from the duty will be £467,000 for 2026 – but this figure is lower than it will be in future years, as it only comes into force halfway through the year.
Predictions suggested that in the following years – 2027, 2028 and 2029 – that the government predicts it will see its full potential, with it bringing in £955,000 each year.
It’s been estimated that the cost of implementing the new tax will be around £400,000 over the next four years, with an initial cost of £145,000 this year.
Deputy Millar said: “As vaping liquid is not yet taxed income, forecasts were based on best-available data and are likely to be revised in future years once the tax is in place.”
This new tax on vapes was included in the recent budget to “dissuade” young Islanders from vaping, the Treasury Minister has previously explained.
It is more about the health impacts of trying to dissuade children and young people from vaping,”
The Treasury Minister previously said
“But that has to be balanced with the need to try and not encourage people to smoke instead,” she said.
Deputy Elaine Millar said the policy was part of a broader effort to reduce nicotine consumption, focusing on improving public health rather than generating revenue.
It came after data published revealed that more than half of Islanders aged between 16 and 34 had used vapes at least once.
Public Health director Peter Bradley previously said: “Vaping is known to be less harmful than smoking and is a useful method to help smokers quit.
“However, we have seen a rise in people choosing to vape, including young people.
“Although most young people don’t vape, we know we need to do more to protect our children and young people from the use of vapes and nicotine, while maintaining the appeal to adults who want to stop smoking.”
