How will it work?
We know that excessive sugar consumption is bad for health. We also know that the nation’s sugar consumption is too high. But it’s not easy to cut this down. After all, we all should be able to indulge, and making healthier purchases is often more expensive.
DontTaxHealthy offers a practical solution. Innovative products which contain a lower amount of sugar will be subject to a lower amount of VAT and will be more accessible to the average consumer. Working with the nation’s eating habits (and budgets) we can reduce our sugar consumption.
But how will it actually work?
To be clear, DontTaxHealthy is petitioning the government to cut the VAT from the standard rate of 20% to the reduced rate of 5% for all products which can make a reduced sugar nutrition claim. To be able to make a reduced sugar nutrition claim, a product must meet the below criteria. This is the criteria as set by the EU in the Annex to Regulation No 1924/2006:
1) Product must have a sugars content which is reduced by at least 30% in comparison to a similar product / group of products that are representative of the product’s market.
2) The amount of energy (Kcal and KJ) of the product making the claim must be equal to or less than the amount of energy in the representative similar product / group of products.
In effect, the criteria ensures that customers can make informed choices. Reduced sugar products contain at least 30% less sugars than average products in their category, and the reduction in sugars hasn’t been replaced with a significant increase in calories.
All products which meet this criteria would be able to be taxed at the reduced rate of 5% rather than the standard rate of 20%.