UK: BSDA calls for VAT reduction on fruit juice
By just-drinks.com editorial team | 10 July 2007
The British Soft Drinks Association (BSDA) has called for a reduction in the value added tax (VAT) levied on fruit juice.
The BSDA, whose members include the UK's leading packers of fruit juice, said it was in favour of reducing VAT on fruit juice and believes that the application of the standard rate of VAT (17.5%) to fruit juices is a "deterrent to consumer purchasing and contradicts the Government's public health policy of promoting fruit and vegetable intake".
The UK's Food Standard Agency's Consumer Attitudes to Food Survey in February 2007 showed that although 71% of people know that they should be eating five portions of fruit and vegetables a day, only 30% actually do so.
The BSDA added that fruit juice sales were price sensitive, and that volumes in some categories have recently fallen in line with the increases in retail prices necessary to cover price increases in raw material. The world price of orange juice from concentrate is now at its highest for 15 years at US$2,600/tonne, double the price in 2004.
BSDA believes that any price reduction from cutting VAT on fruit juice should be passed on to the consumer and is working with retailers to achieve this.
Sectors: Soft drinks