The
new measure is being objected to by health food stores and pharmacists.
A
zero-VAT rating has been applied to vitamins, minerals and fish-oil supplements
such as Omega 3 for the last 47 years.
The
Irish Health Trade Association claims it could threaten 25 businesses with
closure and put 1,800 jobs at risk.
It
warned it will affect vulnerable people like the elderly who use supplements to
strengthen their bones.
And
it points out VAT on a fast food burger is just 13.5pc.
The
price of many popular food supplements, vitamins and minerals which people use
to ward off winter colds and improve their wellbeing will cost up to €7 more
from March.
The
Revenue Commissioners will impose 23pc VAT on these items - and health food
stores and pharmacies are expected to pass it on.
Once
the new rate comes into effect it will mean the Cleanmarine MenMin caps for
menopause support would increase in price from €24.99 to €32.97.
Udo's
Choice Ultimate Oil (500ml) will increase from €25.99 to €31.97.
Terranova
Nutrition Glucosamine Sulphate (1,000mg) will rise from €15.92 to €19.58.
Nelson's
Rescue Remedy - which people use for emotional support - will go up from €12.50
to €15.38.
However,
the protein supplements favoured by image-conscious people who work out in the
gym won't be affected as they have been subject to VAT for some time.
A
spokesman for the Revenue Commissioners said that under the VAT Consolidation
Act, the standard rate of 23pc applies to all food supplements which are not
foods in the ordinary and everyday meaning of the word.
"Revenue
published new guidance on December 27 concerning the rate of VAT that applies
to food supplements.
"The
new guidance withdraws the concessionary application of the zero rate to
certain food supplements, vitamins, minerals and fish oils, provided for in
previous guidance," he said.
"These
products will be liable at the standard rate from March 1. Products, including
folic acid and vitamin products licensed by the Health Products Regulatory
Agency will continue to be liable at the zero rate."
Alan
Martin, of the Irish Health Trade Association, said: "For the past 40
years food supplements have been sold at the zero rate."
He
said the 23pc rate needed to be urgently revisited by Finance Minister Paschal
Donohoe as it would have a major effect on the old, the elderly and the sick.
"It
will push the cost beyond what many people can afford and seriously threaten
the viability of health stores and pharmacies who strive to offer this
important health service," he said.
"Health
stores are at risk as many are small, independent businesses on the main
streets of small towns."
Mr
Donohoe said the proposed measure arose from "an interpretation of our tax
code by the Revenue Commissioners who are, as everyone knows, independent of
direction from me.
No comments:
Post a Comment