A PRICE war is on the cards after a supermarket slashed the price of cough and cold remedies.
Cuts have been made in all Asda's 265 stores, including Huddersfield.
The supermarket chain has dropped prices by 17.5% on 190 cough and cold remedies, including over-the-counter medicines and stronger products sold only at Asda pharmacies.
For example, Vick's Vaporub decongestant has fallen in price from £2.51 to £2.14.
The 17.5% price cut on each cough and cold product is equal to the amount to be paid in Value Added Tax (VAT) on the product.
By European law, Asda cannot get rid of VAT on a product, so the firm will continue to pay the tax to the Government and the 17.5% price cut will come out of its own profits.
Angela Spindler, Asda trading director, said the firm made the cuts because it believed non-prescription medicines should be VAT-free, just as prescription medicines were.
Asda recently carried out a survey to find out how well its customers understood VAT.
The survey showed that people were confused by the way VAT is applied to products.
For example, oranges are classed as essential items and carry no VAT, but freshly squeezed orange juice carries the full 17.5% of VAT.
Ms Spindler said:
"Our customers don't see why they have to pay VAT on essential items such as cough and cold remedies and neither do we. So from now, they won't have to."
