P&G faces VAT payments as Court of Appeal rules Pringles a potato snack
LONDON - Procter & Gamble is set to be forced to pay VAT after the Court of Appeal ruled that its Pringles brand constitutes a potato snack.
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P&G has claimed that Pringles is not a potato chip but a savoury snack, as the product only contains 42% potato and a host of other ingredients including emulsifier, fat and wheat starch .
Last year, the High Court found in P&G's favour and ruled that the snack was exempt from the tax. But yesterday Lord Justice Jacob ruled that ‘there is more than enough potato content for it to be a reasonable view that it is made from potato'.
Lord Justice Jacob added that most potato crisps have lost the natural flavour of potato, even when ‘some overpowering flavour such as cheese and onion' has not been added.
Pringles
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