Call for tax breaks on plant milks

A new report has called for an end to discrimination when it comes to VAT on plant milks.

ProVeg has released The Plant Milk Report, suggesting that the industry is politically disadvantaged in some countries; in the European Union, it is not permitted to label plant-based milk alternatives with the word ‘milk’. Instead, such beverages are only allowed to be referred to as ‘drinks’.

In addition, the taxation of plant milk in the EU also varies from country to country, although some countries do not distinguish between cow’s milk and plant milk. In Germany, for example, plant milk bears a 19 per cent value-added tax (VAT) and is classified as a luxury food. Cow’s milk, on the other hand, carries only a seven per cent VAT surcharge.