Tobacco Products Duty – new category of product

Friday, 28 June 2019

From 1 July 2019, a new Tobacco products duty category called ‘tobacco for heating’ is being introduced to the Tobacco Products Duty Act 1986.

Heated tobacco products (also known as ‘heat not burn’) contain processed tobacco that is heated, but not burned as it is in conventional tobacco products. Although these products are very similar to e-cigarettes, this classification of tobacco product does not include the e-liquids that are used in e-cigarettes (“vapes”), as the liquid does not normally contain tobacco.

The products already liable to excise duty are cigarettes, cigars, hand-rolling tobacco, other smoking tobacco (i.e. ‘pipe’ tobacco) and chewing tobacco. Duty is also chargeable on tobacco substitutes, which since 1 January 2014 include herbal cigarettes and herbal smoking mixtures.

The amendment  adds tobacco for heating as a category in the table of rates, together with the weight measurements to be used for calculation of the duty.

A revised edition of Excise Notice 476: Tobacco Products Duty will be published shortly.