I signed a petition to Downing Street a few months ago to get the rate of VAT (Tax) on smoothies reduced, so that it matches that on other foodstuffs (including crisps and Hot Dogs).
Here’s the question:
We the undersigned petition the Prime Minister to encourage people to get their five a day by cutting taxation on healthy fruit smoothies and juices to 5%.”
At the moment, all food (including things like hotdogs and crisps) is subject to a zero rate of tax. But people who want to make a healthy choice and buy smoothies and juices get taxed 17.5% VAT. It’s a simple step, and, as more and more people get their fruit in liquid form, it could make a big difference. Our research shows that at least 500 million more portions of fruit would be consumed each year if this happened. Since we all know that eating more fruit and veg is essential to being healthier, it makes sense to help people make positive choices.
And here’s the response from the Prime Ministers’ office:
To date the Government has been sparing in its use of VAT reduced rates and has only applied these where they are affordable, and provide the most effective and best-targeted support for the Government’s social objectives when compared with other policy instruments.
Dietary based taxes were considered by Derek Wanless in ‘Securing Good Health for the Whole Population’ -published in 2004. The report highlights a number of difficulties of principle and practice in any attempt to use the tax system to influence diet. Furthermore, European VAT rules require that in most cases, the same VAT rate is applied to all competing products. This limits the extent to which any new reduced rate could be targeted on the most healthy fruit drink. [Read More]
In other words: No.
{ 0 comments… add one now }