Guernsey Vape Retailers Warn Proposed Liquid Tax Could Hit Trade and Public Health

Guernsey vape retailers say they are bracing for a potential new excise duty on e-liquids in the island’s 2026 budget, warning it could drive up prices, squeeze small businesses and push some users back to cigarettes or unregulated online products.

According to a report from the BBC, the Policy & Resources Committee (P&R) is considering a duty of £2 per 10 ml of e-liquid. Final proposals have not yet been published, but local shop owners say that figure could have a “major impact” on day-to-day trade.

Retailers split on the likely impact

Tina Dorfner, owner of The Vape Bar in St Peter Port, said a flat rate per 10 ml would significantly raise costs for products like shortfills and nic salts, adding that her business is “very concerned” about the effect on customers and sales.

Peter Bierley, who runs The Tuck Shop and Vape Head, took a more relaxed view, suggesting most customers would absorb the charge and continue vaping, especially if cigarette duty rises in parallel. He argued that this would limit any incentive to switch back to smoking.

Others in the sector disagree. Sophie Dorfner, also of The Vape Bar, warned higher costs could price people out of vaping altogether, increasing the risk of relapse to cigarettes.

Fears over a shift to grey-market products

Some retailers expressed concern that taxing e-liquids may push consumers toward unregulated online products. Sophie Dorfner cautioned that many of these items may be mislabelled or contain illicit substances, potentially leading to greater health risks in the long term.

Wider policy context

The UK government has already confirmed it will introduce a vaping duty of £2.20 per 10 ml from October 2026, while Jersey has signalled plans to bring in a similar measure in its next budget.

Guernsey’s discussions also sit alongside broader fiscal reforms. The States previously agreed in principle to a 5% goods and services tax (GST), alongside changes to income tax thresholds and social security contributions, though parts remain under review while P&R considers corporate taxation options.

What happens next

Retailers have been invited to meet with States officials to discuss the potential duty ahead of publication. P&R is expected to release the 2026 Budget on 7 October, with debate scheduled for 4 November. Until then, business owners say they will reserve judgment, but many are already calling for a balanced approach that protects public health goals, keeps vaping more affordable than smoking, and limits the appeal of black-market products.

Topics