Pasty Tax: Firm switches cabinets back on after cold pasties prove a turn off (From Falmouth Packet)
Pasty Tax: Firm switches cabinets back on after cold pasties prove a turn off
10:19am Monday 12th November 2012 in Truro
A pasty company in Cornwall has switched its warming cabinets back on after a drop in sales.
Warrens switched off its cabinets to avoid passing on the government's much maligned 20 per cent VAT charge on food that is kept hot.
But now the company, which has said that cold pasties "really damaged the business", are switching them back on.
However due to surveys and general feedback from customers that they did not want to pay the 20 per cent, the company will not be charging the full extra amount.
Jason Jobling, from Warrens said: "We're not charging the full 20%, we've charged a percentage and we're taking a little hit as well. "Generally it's been received really well. We've already seen an increase back to the original sales."
The move to charge VAT on pasties was greeted with outrage in Cornwall, leading to a concerted campaign to reverse the decision.
In one of many u-turns the government then changed what was considered a "hot" pasties, with pasties left on shelves cooling down not liable for VAT.