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Time for a cuppa? Taxman to cut rates on herbal tea

The government's cutting the VAT rate on herbal tea. It's reducing the rate to zero - knocking aroun...
TodayFM
TodayFM

3:40 PM - 23 Oct 2014



Time for a cuppa? Taxman to cu...

News

Time for a cuppa? Taxman to cut rates on herbal tea

TodayFM
TodayFM

3:40 PM - 23 Oct 2014



The government's cutting the VAT rate on herbal tea.

It's reducing the rate to zero - knocking around 19 per cent of the price of a drink.

It's one of the measures included in the Finance Bill, which has been published today, a week after the Budget.

The measure overrules a decision by the Revenue Commissioners earlier this year to levy a 23% rate of VAT on all "untreated" tea - meaning all herbal and fruit teas.

Only traditional tea was entitled to benefit from the 0% rate as a result.

Today's measure will reverse this, and ensure that all teas are treated equally for tax purposes.

In a statement the Department of Finance said consumers did not discern between various types of tea, and the tax code should follow suit.

 



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