Asda Cuts Price Of Fruit Juices In Protest Against VAT

Wed, 10 Sep 2008
 
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Asda is set to cut the price on all its 100 per cent fruit juices and smoothies in a bid to demonstrate its anger over current government regulations that penalise healthy shoppers.

The price cut, starting today, is equivalent to the removal of VAT on the products and will run for three weeks across all Asda stores .

The initiative is part of the retailer’s on-going protest against current VAT laws, under which smoothies and 100 per cent fruit juices are categorised as luxury items and therefore subject to 17.5 per cent VAT .

Asda said it wants to see VAT reduced to 5 per cent on such products, the minimum allowed under EU law .

Corporate affairs director at Asda Paul Kelly said that the campaign could help to highlight the issue to the government.

"We have always said that current VAT law on fruit juices and smoothies doesn’t make sense," he argued.

"By rolling back the price of all 100 per cent fruit juices and smoothies, we’re rewarding customers for choosing healthy products, instead of penalising them, as the current law does."

A survey by the supermarket chain recently found that 88 per cent of its customers considered fruit juices to be an "essential" item, rather than a "luxury".

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