Don’t Tax Health Choices

February 6, 2019 by Jurgen

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.

Stop this VAT.ie

No VAT on health supplements!

December 27, 2018 by Jurgen

First the Sugar Tax – now the Health Tax!

Government wants it both ways on health.

In news which has sent shockwaves throughout the entire health and vitality sector, the Minister for Finance is reported to be eyeing up placing a flat rate of VAT on the majority of health food supplements by March 1st, 2019.

Food supplements would include everything, from your common multivitamin to keep a little pep in your step to Glucosamine Sulphate to help with achy knees or Vitamin D which is recommended for babies and supplementation during our long winter months. With the need for over 55s to keep healthy and maintain employment for social and economic reasons, diet, exercise and nutritional supplements have become key areas in supporting general well-being.

Up to now all these products have been treated rather benignly by successive governments and they were not treated as luxury items – which is where most consumer purchases would incur VAT. Today however we have learnt that Revenue wish to treat supplements in the way that other luxuries are treated and that some degree of tax will be imposed upon their purchase, whether it be 13.5% or indeed the upper rate of 23%.

Given the historical statements of Leo Varadkar on the issue of resourcing preventative healthcare, this is seen as a somewhat contradictory stance for the government to take up now. Speaking on the Health (General Practitioner Service) Bill 2014, the then Minister for Health Leo Varadkar is quoted as saying –“This particular measure is the keystone of the Governments policy in the area of primary care…… we are shifting the focus of healthcare from hospitals to the community, and from treating illness to maintaining good health“.

Considering that these items are being purchased by people primarily to maintain good health and by extension relieve some of the stress on the already overburdened health system then the idea of taxing it is seen as a somewhat bizarre initiative.

Revenue have previously offered that the justification for this move was to harmonise our treatment of these products with European tax code. Ciaran Hurley, tax advisor, says “this is just not the case. We have been here before with herbal teas with the same arguments. In that case the Government backed down from applying VAT”. Health food retailers say that their customers will see it to be more a case of the government looking for yet another easy way to tax the consumers pocket and they will vehemently resist this move.

While we wait for a formal announcement at Budget 2019 or the Finance Bill, it is certainly expected that yet again consumers are being required to pay more for something which the Government should encourage rather than tax.

Matt Ronan from Evolv Health Store in Enniscorthy says “we expect there to be a wave of customer anger when it’s explained to people that products which they consider to be necessary to maintain their health are now to be taxed by a government that is struggling to provide a decent healthcare system”.

Alan McGrath, Health Stores Ireland, which represents the retail health food sector, said “the application of the Sugar Tax and the setting up of support bodies like Healthy Ireland demonstrate that maintaining good health is a clear policy for Government, this policy should not be contradicted by the taxation regime. Applying VAT to food supplements would be completely inconsistent with the way they are regulated and with current Government policy on health”.

Contact details to get involved:

Matt Ronan, Evolv Health Store, Enniscorthy, 087-2926182, evolvhs@gmail.com
Alan McGrath, Health Stores Ireland, 087-1006721, alan@healthstores.ie
Technical queries relating to VAT, please contact: Ciaran Hurley, CKH Fiscal Services, info@ckhservices.com, Tel: 01-8600444

Garcinia Cambogia – Weight loss

August 18, 2018 by Jurgen

Garcinia Cambogia

Common Name: Brindleberry, Hydroxycitric Acid (HCA)

Garcinia cambogia is a yellowish pumpkin shaped tropical tree fruit native to the country of India. In 1965, researchers identified HCA as the principle acid found in the fruit and rind of Garcinia cambogia.

According to Indian folk tradition, Garcinia cambogia has been described for such ailments as rheumatism and bowel complaints. The rind and extracts are often used as ingredients in Indian curry dishes and as condiments.

Both Garcinia cambogia and extracted HCA are widely available as a component in many dietary supplements.

HCA, extracted from Garcinia cambogia, has been studied extensively and found to suppress fatty acid synthesis and food intake, in addition to sparing the use of carbohydrate in the body while causing an increase in fat oxidation. Weight loss was common within several studies.