Vape Tax on the Table as Guernsey Mulls 2026 Budget Options
A vape tax could be coming to Guernsey as early as 2026, with the island’s leading political body actively weighing the idea in their upcoming budget plans.
Guernsey’s Policy and Resources Committee (P&R) is currently exploring whether to introduce a levy on vape liquids, similar to what’s being rolled out in the UK. Westminster has already confirmed its own flat rate of £2.20 per 10ml of vaping liquid, set to take effect from October 2026.
Guernsey appears to be considering a parallel move. The island’s Chamber of Commerce has kicked off discussions by seeking input from local businesses. It’s turning to retailers for insights before any decisions are made.
In a recent social media post, the Chamber confirmed that “a consultation meeting for retailers” would be held in collaboration with the States.
“The meeting will explore potential rates, the impact on retailers and consumers, and practical,” the statement read.
The budget, Deputy Lindsay de Sausmarez’s first as President of P&R, is scheduled for publication on 7 October, with a debate due on 4 November. Former Chief Minister Gavin St Pier, now taking the financial reins within P&R, will be front and centre during the discussions.
This potential vape tax forms part of a broader review of how Guernsey funds public services.
Earlier this year, the States approved new regulations on vaping, including a full ban on sales to under-18s. The move came amid growing unease about how vaping products are promoted to younger audiences.
P&R President de Sausmarez has stressed the importance of exploring “all avenues” to boost government revenue. That includes the vape levy, but also ongoing work around a potential Goods and Services Tax (GST).
There’s more. Former Treasury Minister Charles Parkinson has been brought in to review Guernsey’s corporate tax structure.
He’s also tasked with developing a dual strategy, looking at GST and exploring income tax cuts for those earning below £30,000. At the same time, changes to social security contributions are on the table.
De Sausmarez has also floated the idea of scrapping traditional fuel duty. In its place? A system that charges drivers based on how far they travel.
Big shifts could be ahead. But for now, Guernsey’s retailers and vapers are bracing for what could be the island’s newest sin tax.
