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<p>VAT rules do not distinguish between supplies on the basis of whether they might
be considered essential. VAT is a broad-based tax on consumption, and the twenty per
cent standard rate applies across a very broad range of goods and services. While
there are exceptions to the standard rate, these are strictly limited by legal and
fiscal considerations. One such exception is that medicines on the NHS prescription
list are zero-rated for VAT when dispensed by a pharmacist.</p><p> </p><p>Removing
or reducing VAT on a broad range of healthcare products would likely come at a significant
cost to the Exchequer, and with no guarantee that it would reduce the cost to consumers
of the products themselves. While all taxes are kept under review, the Government
has no current plans to make changes here.</p>
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