On December 27th 2018, the Revenue Commissioners introduced a new 23% Vat rate for all food supplements, including vitamins, minerals, probiotics and fish oils. The 23% rate will come into effect on 1st March 2019. This move will seriously undermine the health of people who rely on food supplements to maintain their health. This includes:
- People who rely on food supplements, such as iron, to address diet deficiencies.
- People who take food supplements to reduce the risk factors of diseases, such as heart disease.
- People who take food supplements to enable their body to function at a normal level and maintain a good standard of health.
To put such a huge tax on products that have a positive impact on people’s health makes no sense, and goes against the Government’s own >Healthy Ireland initiative.
Revenue’s decision to introduce such a dramatic increase will have a huge impact on sales for health stores and pharmacies across the country. Most health stores and pharmacies are independent shops trading on the main street of small towns across Ireland. They play a vital role to local business and their local communities.
For the past 40 years, there has been a 0% Vat rate on food supplements. An immediate 23% increase is unprecedented and could put dozens of health stores out of business and cause hundreds of jobs to be lost.
According to an iReach survey commissioned by the IHTA, 71% of Irish people buy health vitamins and minerals all year round, with 73% of those regular consumers doing so to maintain and improve ongoing adult health.
