Important notice regarding VAT Changes
Applies from from December 1st 2008

Many people will have seen the news that the Chancellor reduced the current rate of VAT from 17.5% down to 15% under extraordinary circumstances last week. This move, whilst seeming very generous, isn't without its flaws..

Businesses such as ourselves, which source components from factories all over the world, have been hit with a collapsing pound, worth about 25% less in the open market than what it was just three months ago. The knock on effect of this, is that the products we make or assemble are now considerably more expensive to produce, and we had already envisaged having to raise the price through much of our range in January 2009 - probably to the tune of 7 to 10%. As a company which has held it's prices through most of it's 20 year trading history, and a company which has pioneered the concept of economical compatible water filters (which have actually dropped in price considerably over the past five years), we hope you'd realise that we certainly wouldn't consider such action unless we really had no other choice.

Moving forward we have taken the decision to increase our prices excluding VAT as of December 1st by such a margin that the overall cost including VAT will remain the same. In other words you will pay exactly the same as you have done previously and we will be paying slightly less in tax to HMRC - meaning we are better off to the tune of approximately 2%.

We hope that with this decision, and the hope that the pound will recover slightly in coming months, that this will lead to us being able to hold off any 'real-world' price increases on the cost of our products, at least for the next several months, ultimately benefiting all of our customers. At this troubled time for our economy, stability is our focus, and this seems the best way to achieve it.

We'd like to add the timing of this announcement isn't very fair to businesses. The government know that all companies relying on imports are struggling to keep prices down - As a company we don't understand why they would introduce an act of legislation that firstly is very costly to businesses (implementation of this for a small company could take a couple of hundred man hours), but more over gives consumers false hope that prices will 'crash-down' on the run up to the festivities - When market losses have more than swallowed up what has been given back.

We hope you understand our position, which is something we've given a lot of thought to. We are happy to discuss it case-by-case if you have any queries, just email enquiries@pozzani.co.uk..

Regards



Steve Malloney, Managing Director
Pozzani Pure Water plc