THE government’s about turn on the controversial ‘pasty tax’ has been welcomed locally.
Pasties and other similar items won’t have VAT charged on them if they are cooling down when taken out of the oven.
Pocklingtons Bakers, who have a store in Louth, launched a petition against the tax.
Managing Director Chris Pocklington said it was good news for bakers and customers.
He said: “We’re pleased. It’s good for us and for customers that they won’t have to pay 20 per cent on a warm pasty.
“To celebrate we are going to knock 20 per cent off all hot pies and pasties on Wednesday (May 30) to thank customers for signing the petition.”
Shadow chief secretary to the Treasury, Rachel Reeves, said the Government’s u-turn was ‘a total and utter shambles’.
Ken McMeikan, Greggs’ Chief Executive, added: “We’re very pleased the Government has listened to the bakery industry’s concerns and applaud them for simplifying the rules on VAT applicable to freshly baked products. This is great news for customers and I’d like to thank them and our staff for their wonderful support.”