A 20 per cent tax on hot pasties was introduced in October 2012, but even now some businesses are still charging it when they shouldn’t and not charging it when they should. But when should Value Added Tax (VAT) be added to pasties?
If a pasty has just come out of the oven and is still warm then the tax should not be added. However if the pasty has been placed in a heated cabinet to keep it warm, then it should incur the 20 per cent tax.
To combat the tax some companies are simply storing their cooked pasties in non-heated cabinets but aren’t pasties meant to be eaten warm?
Would you rather eat a cold one or pay a few extra pennies? Other companies are choosing to cook smaller batches, so they remain hot when sold.
But it seems that VAT isn’t the only worry for businesses in this industry. The cost of ingredients has also crept up adding to the tax blow. Ruth Huxley from Cornwall Food and Drink spoke of the challenges.
She said: “The timing was terrible because of the cost of ingredients going up and people’s spending power being reduced. VAT on food of 20% is an enormous amount for people to take out of their takings on foods.”
Do you think the Government is scraping the bottom of the barrel with the pasty tax? Is it right to charge a tax on food that has been kept warm just so it can be eaten how it is meant to be?
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