Anyone who has been following us on Facebook or seen our previous posts relating to the MHRA will have seen that we have been warning consumers to stand up for their rights or else see them trampled over by government bodies such as the MHRA. I urged retailers to join together and make a concerted effort to combat these diktats. A combination of consumer and industry pressure might have gotten somewhere. Instead, with a few notable exceptions we were met with apathy and voices urging us to keep quiet. Some retailers being so stupid presumably that they thought the MHRA would stop with us (which has already been shown not to be the case).
Anywa, it is late on Tuesday night now and I can reveal that tomorrow’s budget will announce that VAT will be added to the price of protein drinks. Previously, protein powders and ready to drinks had been exempt from sales tax due to them being classed as foods but the government will tomorrow be unveiling in their budget that this is to end putting protein products in line with other European countries where they are taxed but with the kicker that in the UK they will be taxed at 20%. That means your £40 protein will now cost £48 if the tax includes protein powder and not just RTD’s. My source is unclear on exactly what will be covered by the tax but says it will include drinks. Unsure if that means ready to drinks or all protein powders which when mixed become a drink. She does say though that it is likely to include protein powders as they are consumed as drinks and remarked it would be illogical if only one or the other was taxed.
What can we say really except that the apathy shown in failing to register protests with MP’s over the MHRA action, and failing to get the petition to overturn the ban on herbals signed in sufficient amounts only shows to government that the sports nutrition industry is one which can safely be targeted as the vast majority of its users or companies do nothing at all to make their voices heard.
The only silver lining is the introduction of this new tax will be delayed until October so I advise you all to stock up on protein until then!
© 2012, Reggie Johal. All rights reserved.