The ‘Samosa Tax’Tuesday, March 27th, 2012
VAT has been charged on takeaway food for more than 20 years. However, ‘some new hot takeaway products’ are not being charged, most commonly from supermarkets and bakeries. They argue that foods like pies and rotisserie chickens are not sold to be eaten immediately, therefore, fall outside of the scope of VAT.
The Chancellor is looking to address ‘some of the loopholes and anomalies, so look out for the levy, dubbed ‘The Samosa Tax’, which will come into force in October 2012, and which may lead to increased prices for pies and pasties.