The reduced rate of VAT
Within the UK there are three rates of VAT: zero rate (0%), standard rate (20%) and reduced rate (5%). Under current EU Law, if an item is currently subject to either the standard or reduced rates of VAT, it cannot be amended so that is zero-rated. The EU’s permission is required to revise a member state’s zero rate allocations.
The reduced rate is often used where the government considers there to be a social responsibility to improve access to particular products. In 1993, the UK government reduced VAT to 5% for domestic and charity-consumed fuel and power and more recent extensions of the reduced rate include for women's sanitary items, children's car seats, energy-saving materials, contraceptives, and smoking cessation products.
We’re living through a worsening obesity epidemic. It is socially responsible for the government to reduce the rate of VAT to 5% on all food / drink with an EU-approved reduced sugar nutrition claim. Let’s improve access to healthier purchases.