e-Petition: Call for Common Sense on Food VAT (e.g. Innocent Smoothies)

Tripleeagle

Under current British tax rules, consumers pay no VAT on "essential" foods and drinks but must pay 17.5% on "luxury" items such as smoothies, ice cream, and "gingerbread men decorated with chocolate unless this amounts to no more than a couple of dots for eyes".

The set of rules which dictates whether a product is taxed or not was created in 1973. It is archaic, arbitrary, and unfair. For example, smoothies - which contain fruit and help people live more healthily - are subject to VAT at full rate when junk food such as burgers, chips and doughnuts are sold tax-free.

We request that the government makes HMRC take a closer look at its taxation on foods. This should create a more modern, clearer, and fairer tax system which takes into account the externalities associated with the consumption of all major food products.

Please sign here: http://epetitions.direct.gov.uk/petitions/5130

FTBFun

Ooh a petition on tax! Makes a change to all the "string em up" ones.

I'll probably sign up, although pedanticly burgers and chips aren't necessarily "junk food", depending on how they're made up and cooked. McDonalds etc are already VATable as takeaway hot food.

antrobus

Tripleeagle wrote: »

For example, smoothies - which contain fruit and help people live more healthily ...

No they don't. For the price of one Innocent Smoothie you could buy half a greengrocer's entire stock. I'm in favour of anything that discourages people from wasting their money on such over-priced processed food products.

zygurat789

Let them eat fruit

System

Tripleeagle wrote: »

must pay 17.5% on "luxury" items

I would check your tax rates if I were you.

RobertoMoir

It maybe wouldn't hurt to update the VAT rules and make them a bit fairer and consistent (though I suspect it would cost a fortune in court wrangles over 'edge cases').

I'm not sure I agree with the idea that pre-prepared smoothies are not luxury items though. It's not exactly difficult, and far cheaper to boot, to make your own.

Pennywise

Burgers and chips will only ever be zero-rated if bought raw and cooked yourself. The moment they are cooked, i.e. from a burger van, fish & chip shop, cafe, etc., they become standard rated.

When people talk of junk food causing problems, I'm sure they mean people who buy ready cooked, rather than buying raw and cooking themselves!

MonkeyMad

RobertoMoir wrote: »

It maybe wouldn't hurt to update the VAT rules and make them a bit fairer and consistent (though I suspect it would cost a fortune in court wrangles over 'edge cases').

I'm not sure I agree with the idea that pre-prepared smoothies are not luxury items though. It's not exactly difficult, and far cheaper to boot, to make your own.

Now, I think we all know the best way for Government to avoid these kinds of costly wrangles would be to make VAT flat-rated on all foods......

John_Pierpoint

Don't encourage them - once something becomes Vatable it (usually) remains vatable at 5% for ever.

antrobus

MonkeyMad wrote: »

Now, I think we all know the best way for Government to avoid these kinds of costly wrangles would be to make VAT flat-rated on all foods......

There are indeed those who argue that any Goods and Services Tax such as VAT should be levied at a uniform rate on everything. Which is the way they do things in New Zealand; they charge 15% VAT on everything except rent, interest and most other kinds of things that banks charge for. It makes life a lot simpler, since there are no arguments about whether a Jaffa Cake is a biscuit or the like.