Supermarket chain Asda has called for a reduction in VAT on fruit juices and smoothies, claiming they penalise consumers looking for healthy drink and food choices.
Under current UK tax laws, items such as 100 per cent fruit juices are subject to a 17.5 per cent VAT charge as they are classified as ‘luxury’ goods.
Asda has filed a petition on the Downing Street website asking the government to reduce VAT on 100 per cent fruit juices and smoothies from the current 17.5 per cent to 5 per cent – the lowest level allowed under EU law .
The retailer said it plans to lobby support for its campaign among MPs, health and nutrition workers and organisations, stakeholder groups, consumers and its employees during the coming weeks.
Asda’s director of marketing operations, Sally Hopson, said: “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 commonsense 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 the Treasury collects roughly £200 million each year from taxes on fruit juices and smoothies.
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