Government Calls a U-Turn on ‘Pasty Tax’
George Osborne has done a U-turn on the so-called ‘Pasty tax’ and this has been heralded as ‘fantastic’ by pasty-fans in Cornwall.
The Government had planned in the Budget to implement a 20% VAT charge on pastry products from the oven, something which attracted plenty of controversy. But it has been revealed that the Chancellor of the Exchequer has now changed his mind and campaigners have welcomed the move.
Bakers demonstrated outside Downing Street last month in protest to the ‘Pasty tax’ with numerous banners dubbed ‘Save Our Savouries’ and it appears that the dispute has been heard. Now MPs have amended the tax so only food cooling rather than being kept hot in special cabinets will be liable for VAT.
Mark Muncey, chairman of the Cornish Pasty Association, told the BBC it is fantastic news as it will save jobs in the industry. He said: “The way the whole industry came together was a very important factor in bringing about the changes.”
Industry insiders claimed it would be unfair for bakers to be hit with the same charges as fish and chip shops because it is hot because it is fresh out of the oven, and not the same as having it in a heated cabinet. The VAT increase would have resulted in an extra 40p on a £2 pasty.
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