In October of this year, the government plan to introduce VAT treatment to all energy and recovery drinks and there are a number of reasons why we think this is a bad idea.
This directive affects the whole industry, not just TORQ and it will effectively increase the prices of energy and recovery drinks by 20%. The tax is directly levelled at smaller independent business, because it is allegedly ‘closing the VAT loophole’ on powdered energy products. These products are aimed at the niche market for more serious exercise enthusiasts. The larger companies producing brightly coloured ‘ready to drinks’ for supermarkets and service stations for general consumption by the population have always been treated differently.
Currently our tub of TORQ recovery costs £36 and is zero-rated (no VAT), because it has been considered a ‘food’ for use by a specific athletic population. The VAT treatment on this product will increase the cost by £7.20, bringing the new cost to £43.20.Obviously we don’t want to bring these increased costs to our customers, so there’s an obvious business reason why TORQ are set against this directive. However, from a moral perspective, we can’t understand why the government would want to tax a healthy lifestyle? Our products are designed for use by physically active people who take their health and fitness very seriously.
There is a mountain of validated research supporting the positive physiological and psychological effects of regular exercise. These include reduced obesity risk (weight management), reduced risk of diabetes (increased insulin sensitivity), reduced blood cholesterol, increased cardiac function, reduced cancer risk, enhanced mood state, reduced risk of depression – to name but a few.
All of this adds up to a better, more stable society, less sick days at work and a reduced strain on the National Health Service. The government stands to gain so much from encouraging a healthy active lifestyle, so we feel this directive is morally wrong and short-sighted.
If you agree with our sentiments and don’t want your healthy lifestyle taxed, please take the time to complete the e-petition by clicking on the link below:
Many thanks and I promise the next story we put up will be much more exciting and positive.