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Call for lower VAT rate on drinks

The chairman of the Beverage Council of Ireland has called for a reduction in the 21% VAT rate currently imposed on soft drinks and mineral water.

James Connolly told the BCI's annual conference in Killarney that tea, coffee and milk were deemed to be food products and taxed at zero, while soft drinks, bottled water and fruit juices were taxed at the luxury rate of 21%.

Mr Connolly also called for the Groceries Order, which bans below cost selling, to be extended to other products. He said that in the lifetime of the order, the price of food products not covered by it had risen by 30% more than products which are covered.