VAT U-turn puts fast casual players in a spin.

(From Restaurant Magazine)

The scrapping of the proposed 'pasty tax' proves hard to swallow

Industry players have criticised the Government over last month's 'pasty tax' U-turn saying it will further complicate the tax system.

The Government had announced in its March budget that it would add VAT to all hot takeaway food in a bid to close a loophole exploited by supermarkets, bakeries and sandwich shops that meant their food was exempt of the levy. Yet it has since backed down from its position, following intense lobbying from national chains such as Greggs. The tax will not now be charged on products such as pasties that are taken from the oven and left to …