UK Chancellor of the Exchequer Jeremy Hunt has reportedly rejected the Health Department’s call for a tax on disposable e-cigarettes. The Department of Health argues that a new tax on e-cigarettes could crack down on underage smoking, but the chancellor argues doing so would undermine their role as a smoking cessation tool.

The Department of Health and Social Care has been pushing for the new tax to be in line with rates on traditional cigarettes. At present, the UK imposes a tobacco tax of up to 82% on cigarettes, while only levying a value-added tax of 20% on e-cigarettes. The Ministry of Health believes that such a difference will encourage more people to switch to e-cigarettes, especially minors.

However, UK Chancellor of the Exchequer Jeremy Hunt disagrees with this view. He believes that e-cigarettes are an important tool to help people quit smoking, and should enjoy the same 5% tax rate on harm reduction products as conventional nicotine replacement therapies such as nicotine gum and patches. He pointed out that there is currently insufficient evidence that e-cigarettes cause minors to start smoking or increase the risk of smoking.

It is reported that the British government will announce a new budget on March 15, when there will be a final decision on e-cigarette taxes.

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