Tesco, Asda to freeze VAT on certain lines

29th Dec 2009 14:32

Supermarket chains Tesco and Asda are to freeze VAT on a number of their products.Tesco said thousands of products such as TVs, iPods, toys and bikes as well as many promotional lines will be held at the lower VAT rate of 15%. The duration of the VAT freeze will vary between stores, it added.Asda, which is owned by Wal-Mart, said more than half of its products eligible for VAT will not move in price, including its George clothing range. It did not say nho long the VAT freeze will remain. VAT was reduced to 15% by the government last year. It is due to go back up to 17.5% in the new year."The VAT reduction was a welcome relief for millions of shoppers and helped many continue to treat themselves over Christmas," said Richard Brasher, Tesco's commercial director."We want to extend this help in to the New Year and hope that by freezing VAT on thousands of products consumers will feel able to bag a bargain and get 2010 off to a great start," he added.