This petition was submitted during the 2010–2015 Conservative – Liberal Democrat coalition government
Rejected petition Call for Common Sense on Food VAT Pricing (e.g. Innocent Smoothies)
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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.
This petition was rejected
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