Vape Tax: Why Nicotine Pouches Are Not Affected

A new Vaping Products Duty will increase the cost of all vape juice by £2.20 per 10ml starting on 1st October 2026. But will it also affect nicotine pouches? In this blog, we’ll dive into the current regulations on nicotine pouches, explain why they’re treated differently from vapes, and help you understand what you should expect for the future.

What are nicotine pouches, and how do they work?

Nicotine pouches are a smokeless, tobacco-free nicotine alternative for delivering nicotine. They’re small, discreet sachets that you place between your lip and gum, where they release nicotine and flavourings gradually over about 30 minutes.

Unlike smoking or vaping, you can use nicotine pouches in almost any setting, including indoors or in other places where smoking and vaping are banned.

They arrived in the UK in 2019 and have quickly gained popularity among people looking to quit tobacco or reduce their vaping. Their low cost and flexibility make them one of the most accessible nicotine alternatives on the market.

The Tobacco and Vapes Bill and the UK Vape Duty

Starting in October 2026, the UK government will introduce a new excise duty on all vape liquids, adding a charge of £2.20 per 10ml. This duty will apply to all vape juices, regardless of whether they contain nicotine.

The goal is to discourage vaping among younger users, and to reduce the environmental impact of disposable vapes. The bill also includes the following:

• It is illegal to sell tobacco products to anyone born on or after January 2009.

• Disposable vapes will be banned after 1st June 2025.

• Includes provision for the restriction of flavours, packaging and display of all vaping products.

Nicotine pouches will not be affected by the new Vaping Products Duty on 1st October 2026, and for now, you should not see any increase in costs.

Why Are Nicotine Pouches Exempt from Vape Taxes?

Nicotine pouches are exempt from the UK vape duty because they are not classified as vape products and are not regulated in the same way.

• Pouches are not a tobacco product, so they are not subject to the Tobacco and Related Products Regulations (TRPR) 2016.

• They are also not regulated by the Medicines and Healthcare products Regulatory Agency (MHRA), because they do not make any medicinal claims.(1),

How are nicotine pouches regulated in the UK?

Nicotine pouches are currently in a regulatory grey area in the UK. They are regulated by the General Product Safety Regulations (GPSR).(2) which also cover items like toys, cosmetics, and household gadgets.

This means that as long as nicotine pouches meet general safety standards, they’re not subject to specific taxes like vape products are.

There is also no direct mention of nicotine pouches in the Tobacco and Vapes Bill factsheet, only that they are going to make provision for age of sale regulation for ‘these products’.(4)

The implications of nicotine pouch exemption from current regulations

Yes, nicotine pouches aren’t technically age restricted yet. 

This is an astounding oversight, considering the main aim of the new Tobacco and Vapes Bill is to prevent children from getting addicted to nicotine. Yet nicotine pouches, gum and strips seem to have slipped by unnoticed.

Think about that, a nicotine delivery method that is cheaper than vaping, virtually invisible when used and containing potentially double the nicotine content of the strongest vape juice - can be legally sold to children. If you’re an adult with children of your own, this could be of major concern as it’s already been demonstrated how easy it is for kids to get their hands on disposable vapes, which are illegal to sell to minors.

The heavy vaping cost increase and the banning of disposables stands in stark contradiction to the vague classification and lack of control over other nicotine products. This poses a serious risk that under 18s could shift to these discreet alternatives as they look for cheaper options.

Currently age restricted sale of nicotine pouches is at the discretion of traders. Here at Alternix for example, we believe that all nicotine products should be restricted for sale to over 18's only and we employ our own independent onling age verification for this.

Lack of age of sale regulations opens the door for exploitation by unscrupulous vendors, such as corner shops and notorious American Candy stores - where a lot of children are exposed to nicotine products in the first place.

How are nicotine pouches taxed in the UK?

For now, nicotine pouches are only subject to the standard 20% Value Added Tax (VAT), applied to most goods and services in the UK. There is no additional excise duty on these products, making them a more affordable option compared to taxed vaping products.

Can nicotine pouches be a substitute for vaping?

Nicotine pouches have several qualities that make them an attractive substitute for vaping:

• Convenience: No charging of gadgets or messy juice bottles. Just a neat tub of pouches that can be used and disposed of like gum.

• Discreetness: There are no limitations to their use. They can be used indoors and in any conceivable situation where you could not smoke or vape. This includes office meetings and airports.

• Eco-friendly: Unlike vapes, there are no metal components (think of all the lithium batteries in vapes), just a plastic tub and cotton pouches filled with organic material, all of which can be recycled.

These advantages may lead some current vapers, especially those looking to save money or avoid potential future restrictions, to consider switching to nicotine pouches.

Are nicotine pouches more affordable than vapes?

Let's not forget the cost savings. Nicotine pouches are 25% cheaper than vaping (more after e-liquids get taxed in 2026). You can expect to spend roughly £40 a month on nicotine pouches, which is over 80% cheaper than smoking.

You can drive costs down even further by buying in bulk with multi-buy mix and match deals like the ones found at Alternix.

Conclusion

Nicotine pouches are currently exempt from the UK vape duty, offering a more affordable and versatile alternative for those seeking a nicotine option without the high costs associated with vaping products. However, as the popularity of nicotine pouches grows, there’s a possibility they could come under greater regulatory scrutiny in the future - especially concerning age restrictions and taxation.

For now, nicotine pouches remain a cost-effective choice. Whether you’re looking to cut down on vaping costs or find a discreet nicotine source, pouches offer a flexible solution. But the regulatory landscape could shift at any time, so it’s worth keeping an eye on government updates if you’re considering making the switch.

Have you tried nicotine pouches as an alternative to vaping? What are your thoughts on the current regulations? Let us know in the comments!

Sources

(1)Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment

https://cot.food.gov.uk/sites/default/files/2022-05/TOX-2022-22%20Nicotine%20pouches%20updated.pdf

(2)Medicines and Healthcare Products Regulatory Agency (MHRA) responsible for regulating medicines in the UK, but nicotine pouches are not classed as a medicine.

https://www.gov.uk/government/organisations/medicines-and-healthcare-products-regulatory-agency

(3) Nicotine pouches are regulated under the Tobacco and Related Products Regulations (TRPR) 2016

https://www.legislation.gov.uk/uksi/2016/507/contents/made