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Making a meal of it: uk's government cools on tax hike for hotsavories, other unpopular plans by grehh hernjer





Article Author Biography
Making a meal of it: uk's government cools on tax hike for hotsavories, other unpopular plans by
Article Posted: 07/12/2013
Article Views: 46
Articles Written: 1951
Word Count: 445
Article Votes: 0
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Making a meal of it: uk's government cools on tax hike for hotsavories, other unpopular plans


 
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LONDON – Britain's government has cooled on its plan to impose a new salestax on hot savory snacks, such as the humble Cornish pasty andsausage roll, after being criticized for unfairly attacking thepoor. The country's Treasury confirmed Tuesday that it has amended plansannounced in March's annual budget to close a loophole, whichallowed some heated takeout items to escape a 20 percent sales tax. Ministers repeatedly insisted the plan was necessary to raise newrevenue, and to bring tax on snacks in line with the levies imposedon the nation's other favorite takeout dish, fish and chips. In a complicated — and potentially confusing — changeto its original plan, the Treasury said a 20 percent sales taxwould now be levied only on cooked pies and pasties, which are thenkept hot deliberately. It won't apply to baked goods which are sold after leaving theoven, but happen to still be warm.

Under the original plans, colditems were always intended to be sold without having the sales taxadded. The Treasury said it had also altered plans to impose a 20 percentsales tax on trailers — known as static caravans in Britain— amid sharp criticism from manufacturers, who warned thepolicy would cost jobs at a time of meager economic growth. A levy of 5 percent will now be charged on sales of new trailers— often purchased as holiday homes. The changes, which will cost the Treasury about 70 million pounds($110 million), follow a raucous campaign against the plan, led byBritain's tabloid newspapers and one of the country's leadingbakery chains.

It represents the second misstep by Prime Minister David Cameronover the so-called "pasty tax" — though declaring himself "apasty eater," Cameron became confused over where exactly he hadlast purchased one of the hot snacks. The savory treat, a combination of meat and vegetables carried in apastry crust, is synonymous with Britain's working class, and issaid to have been invented as a lunch dish for tin miners inCornwall, southwestern England. Chris Leslie, a lawmaker and economic spokesman for the mainopposition Labour Party, said the government had bowed to publicpressure. "They are not U-turning out of the kindness of their hearts, it isbecause they are being forced to do so," Leslie said. "What achaotic way to run a country." Bakery chain Greggs PLC welcomed the development.

Its chiefexecutive Ken McMeikan said the change was "fantastic news for thecustomer" and claimed it would safeguard jobs. Greggs share pricewas up nearly 7 percent on the news.

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