Asda launches VAT campaign

Date: 7th May 2008

Asda has launched a campaign aimed at convincing law makers in the UK and Europe to cut the rate of value added tax (VAT) levied on fruit juice and smoothie drinks.

The supermarket giant has claimed that the current rules effectively penalise shoppers for buying healthy products and in many cases deter them from buying the kind of healthy drinks they should be adding to their baskets.

Making its case, Asda has pointed out that many food and drinks are exempt from VAT because they are considered to be "essential" goods but this list includes a variety of items that are undoubtedly unhealthy.

A statement from the retailer read: "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."

Heart Research UK has come out in support of Asda's efforts to change the tax laws to enable supermarkets to sell their fruit juices and smoothies at more affordable prices.