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Pasty Tax – the saga continues

Author: Henry Ejdelbaum

Tags: Pasty Tax

Surely not another U-turn in the pasty tax saga? The current argument is whether Subway sandwiches that are toasted should incur the 20% charge. The existing rule suggests products that are left to return to ‘ambient temperatures’ on shelves in bakeries and supermarkets are not included and only those that are kept warm will attract the VAT.

One thing is for certain, the implementation of the Pasty tax has not been thought through and I’m sure the impact it could have on small businesses has also been ignored. For already struggling businesses it may tip them over the edge at a time when people are already cutting back on spending and eating out.

Let us know what you think about the Pasty Tax and whether you think it’s a good idea? Let’s not forget that the introduction of the tax is meant to raise around £100m to help stabilise the economy, but I wonder what the impact will be if the businesses incurring the charge start to wobble.