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 - Tue, May 6, 2008

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Total Stories: 30          Published: Tue, Apr 29, 2008



Asda calls for VAT reduction on fruit juice and smoothies


ASDA is asking the people of Enniskillen to support its campaign to reduce VAT on 100% fruit juices and smoothies and to help bring an end to a tax which unfairly penalises people for choosing healthier options.

Under current tax law, people pay zero VAT on 'essential' foods and drinks such as milkshakes, frozen pizzas and chips but 17.5% on 'luxury' items such as smoothies and 100% fruit juices.

ASDA is calling for this to be reduced to 5%, which is the minimum allowed under EU law.

Sally Hopson, Marketing Operations Director for ASDA, commented: "Current VAT law makes no sense - the Government charges the full rate of tax on healthy fruit juices and smoothies while effectively encouraging people to buy cakes and frozen pizzas by not taxing them at all.

"This is about a common sense approach to pricing: we all know that we should be eating more fruit and vegetables and we know that price often plays a big part in deciding which items to buy. So why should we pay a premium for making healthier choices?"

ASDA estimates that the Treasury currently takes approximately £200m per year from charging 17.5% VAT on fruit juices and smoothies. A petition has recently gone up on the Downing Street website, with Andy Bond, CEO of ASDA, as lead signatory. ASDA will be contacting MLAs, health and nutrition workers and organisations, stakeholder groups, ASDA colleagues and consumers asking for their support.

100% fruit juices and smoothies can deliver significant health benefits: each serving contributes towards the Government's target of at least five fruit and vegetable portions a day and mounting evidence shows that an increase in the consumption of fruit and vegetable lowers the risk of chronic diseases such as coronary heart disease and some cancers.


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