Farmer Fights Linseed Ruling

Monday 4 April 2005

A Sussex farmer who produces Omega 3-rich linseed for human consumption has lost the first round in a fight to keep his farm-pressed oil VAT-free.

In a ruling that apparently flies in the face of government health policy, which urges consumers to increase their intake of the essential fatty acid Omega 3, Customs and Excise decided that linseed oil was not a food and therefore attracted a 171/2% bonus for the chancellor.

Reluctantly, High Barn Oils was forced to change its pricing structure, but customers were outraged by the taxman’s decision.

Durwin Banks of High Barn Oils near Horsham, said: “It seems totally illogical to us that a natural food which meets all the government’s current thinking on healthy diets should be penalized by the taxman when highly processed products that have virtually no nutritional content – and in fact could do us harm – remain VAT free.

“Surely, if the government wants to encourage people to eat healthily, it is those products that should be attracting a levy, not ours.”

Natural linseed oil contains the highest concentration of any food of the essential fatty acid Omega 3, now considered vitally important in combating many modern illnesses.

“Ironically, a non-UK developed linseed which has had virtually all the plant’s natural Omega 3 content bred out of it for the food processing industry is considered edible by the VAT man and is therefore tax-free,” said Mr Banks. “ In fact, the plant breeders have reversed this linseed’s natural ratio of Omega 3 and Omega 6 fatty acids which means the oil could do us more harm than good. Have the lunatics really taken over the asylum?”

Linseed is known to have been part of the staple diet for thousands of years and remains an important daily food for millions of people in the developing world. Its high concentration of the essential fatty acid Omega 3 has led to it being used in trials involving cancer patients, as well as others with high blood pressure and circulatory problems, depression, inflammation and poor bowel function.

The only other significant source of Omega 3, which cannot be made by the body, is oily fish, but governments acknowledge that there are simply not enough fish in the sea to meet our nutritional requirements. European-funded research is now exploring the possibility of genetically modifying linseed to boost its Omega 3 content.

“Customers for whom natural linseed oil has made a significant difference to their health have written in support of our campaign to get this iniquitous tax lifted and we are now urging everyone who thinks the taxman has hit the wrong target to write to their MP,” said Mr Banks.