Pringles eats consumption tax for breakfast

posted by John Lampard on Monday, 7 July, 2008 to the comment subset

Good news for a Monday morning, a time when my dependence on comfort food is usually higher than at any other time of the week: Pringles are no longer deemed a “potato crisp” and are therefore not subject to a consumption tax.

Friday’s judgement is likely to save manufacturer Procter & Gamble Co (P&G) millions of pounds and ensure its customers will not have to pay more for the distinctive-tasting snack in a tube. P&G had gone to the High Court in London to appeal a VAT and Duties Tribunal decision in May that the snack was subject to VAT as it was a potato crisp product, unlike most foodstuffs that are exempt from the tax. With global sales of one billion dollars, P&G had argued Pringles were not similar to potato crisps, due to their texture, “mouth melt” taste, uniform colour and regular shape which “is not found in nature”.

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