Asda campaigns over VAT on non-prescription medicines
Asda has reduced the prices of a range of around 200 cough and cold products by amounts equivalent to VAT in a campaign about the application of the tax to medicines.
Prescription items are zero-rated for VAT, but the full rate of 17.5
per cent applies to over-the-counter medicines. Asda says that customers
do not understand why some items carry VAT. In a survey, Asda found that
only about half of 1,018 adults could correctly
say that OTC medicines carried VAT. Respondents aged over 65 years were
most likely to say that medicines were zero-rated.
Asda wants to see the VAT rate on non-prescription medicines reduced
to 5 per cent, the lowest rate allowed under current European legislation.
The Proprietary Association of Great Britain is supporting Asda’s
campaign. Gopa Mitra, director of health policy and public affairs at
the PAGB, said: “It is absurd that there is no VAT on high-fat
foods ... but VAT is charged for essential items such as treatments
for coughs and colds, cystitis or pain management. People should be encouraged
to take a proactive attitude towards taking care of their own health
and not be taxed on it.” |
The
Pharmaceutical Journal