13. Gambling, Vaping and Soft Drinks: Behaviour Taxes on the Rise

Higher taxes on “behaviour” products

Budget 2025 hits several targeted sectors:

  • Remote Gaming Duty sharply increased
  • New vaping excise duty from 2026
  • Soft Drinks Industry Levy tightened with lower sugar thresholds and fewer exemptions

If you operate in hospitality, leisure, retail or e-commerce, some of your products may now sit in higher-tax categories.

How this plays out for small businesses

  • Cost increases may come through your supply chain (wholesalers, distributors)
  • You may need to reprice or reposition products
  • Customer demand might shift as prices and messaging change

Action steps

  • Audit your product range
    Identify which lines are directly or indirectly affected by higher duties.
  • Talk to suppliers
    Ask how they plan to handle the changes and when price rises will feed through.
  • Consider reformulation or substitution
    For own-brand products or menus, you may be able to choose lower-duty alternatives.
  • Model price vs volume
    Small changes in price can have big effects on demand. Run scenarios rather than guessing.

How can we help at MDH

Book a quick tax chat with me, no strings attached. We’ll have a look at your situation and spot opportunities you might be missing. And as a thank-you, I’ll send you a free copy of our book 75 Ways to Pay Less Tax, packed with simple, practical tips you can put to work straight away. Let’s make sure your money’s working smarter, not harder.

Michael Hemme

Book your Tax Trajectory Review!

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