Aileen Calls for Treasury Rethink over Half-baked Pasty Tax

Details

Friday, 30 March 2012

Clydesdale MSP, Aileen Campbell has called for the Treasury to reverse plans to impose VAT on certain hot foods – warning the so-called pasty tax would hit independent bakers selling hot snacks in Clydesdale.

In his budget the Chancellor announced that from 1 October, any pasty that has not cooled beneath “ambient temperature” must be sold at a price that includes 20% VAT.

Commenting, Aileen Campbell said:

“The Treasury must reverse its half-baked pasty tax which will hit independent bakers selling hot snacks.

“We have a number of bakers in Clydesdale including the Apple Pie of Carnwath, Clarks of Carluke  and the Orchard in Biggar and I don’t want to see them affected by the chancellor’s raid on hot foods. 

“Until now VAT was chargeable on pasties that were heated for consumption, but the new rule means pasties that have not yet cooled from the oven will also be subject to full rate VAT.

“This tax has been sprung on the industry without any consultation and without any thought about how it will impact on businesses. The Greggs chain has had £30 million wiped off its market capitalisation last week following the announcement – and it will also affect small businesses and high streets up and down the country. 

“It is another example of how out of touch the UK Chancellor is with hard-working households and small businesses.”