The Government has surrendered to political pressure and has revoked the announcement in the budget that ‘hot’ pasties would be subject to a 20 per cent Value Added Tax (VAT) charge.
Since the Chancellor of the Exchequer, George Osborne announced the Budget in March 2012; there have been many protests by bakers, such as Greggs regarding the tax on hot pasties. It is for this reason that the Government has decided to amend the criteria of what foods will be subject to the 20 per cent tax.
Foods, such as pasties, sausage rolls and pizza slices that are being kept warm in a ‘hot cabinet’ in commercial properties will still be subject to the tax. But food that is ‘cooling down’ on shelves will be exempt from the tax. So to get the food whilst it is hot, it is probably best to lurk around outside your local pasty shop waiting for the food to be taken out of the oven and put on normal shelves in the shop. But timing that may be harder than it sounds.
Speaking of the tax u-turn, Stephen Gilbert, Liberal Democrat MP, stated: “The Cornish people have won and there will be dancing in streets from Land’s End to the Tamar as people hear that the government has dropped its plans to clobber local people and local businesses with this tax.”
As well as changes to the hot pasty tax, the Government has also delayed the static caravan tax. Static caravans currently do not pay any VAT, but a 20 per cent tax was due to come into effect in October of this year. But due to protests by caravan enthusiasts, this tax has been cut to 5 per cent and delayed until April 2013.
Do you run a bakery? Were you involved in the VAT protest on hot food? Or do you own a static caravan? Share your story on the MOVEHUT Facebook page.
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