Draft Vaping Duty Stamps (Requirements, Reviews and Appeals) Regulations 2026

James Wild Excerpts

Monday 27th April 2026 General Committees

[James Wild (North West Norfolk) (Con)]

It is a pleasure to be talking about vape duty stamps again, Ms Vaz. We spent hours talking about these provisions during the passage of the Finance Act 2026, and the approach that the Minister has set out broadly follows the one that the previous Conservative Government had in mind. None the less, I have a few questions for him.

The first question is about the implementation timeline. HMRC opened applications from 1 April for manufacturers, importers and warehouse keepers, with the duty obligations due to go live on 1 October and a sell-through period to 1 April 2027. Are the current timelines for implementation on track, particularly in relation to the digital stamps duty system? What assurance can the Minister give legitimate businesses that apply in good time that they will be approved and able to continue trading by 1 October? Can he update us on how many have applied so far?

Having spoken to industry representatives, I know they are working hard to be ready, but the key is getting clear guidance as soon as possible. I have heard concerns about some of the timelines. Can the Minister give an assurance that the appointed supplier of duty stamps will give timely information to the industry ahead of the 1 October deadline?

I turn now to illicit trade and enforcement. In Committee stage of the 2026 Act, I raised the example of Italy, where vape sales reportedly fell by 70% after a similar duty was introduced. That was not because people stopped using vapes; it was because they shifted to black market and unregulated online sellers. Experience with alcohol duty stamps shows the problem of counterfeiting. What has His Majesty’s Revenue and Customs learned from the shortcomings and successes of the alcohol duty stamps regime? The Conservatives supported the powers in the 2026 Act for tougher enforcement to shut down premises, but have the Government considered giving trading standards further powers to seize products and issue penalties directly, rather than having to go through HMRC to do so?

The Minister did not mention the cost of this measure’s roll-out, but it is quite significant. Estimates show that HMRC will spend £140 million to deliver it: £20 million on the IT system and £120 million on staffing and compliance. Add in £10 million for UK Border Force, and the total is £150 million straightaway—a significant sum. What assurances can the Minister give that that will provide value for money?

In the spring statement, the Government revised upward the expected revenue from the vape duty from £120 million to £200 million. Will the Minister explain what underlies that estimate? Finally, can he assure us that appropriate due diligence was done before the appointment of SICPA as the provider of the track and trace software solutions, in the light of the fines previously issued by Swiss authorities in connection with acts of corruption?