Price of pasty could rise by 20% under Budget VAT proposals

Plans by the government to introduce VAT on all hot take-away goods could force Cornish pasty makers to add 20% to the cost of a pasty. It would mean a pasty costing £2.50 would rise to £3.00. The proposals outlined in Chancellor George Osborne’s Budget this week would see any takeaway product served to the customer above ‘ambient air temperature’ subject to VAT at 20%.

Fish and chips are already subject to VAT, but other takeaway items like pasties, pies and toasted sandwiches are currently exempt. The chancellor says the changes would clear up anomalies in VAT charging.

A ‘Say no to the Pasty Tax’ Facebook page already has more than 1,500 supporters. It was set up by Cornwall Councillor Alex Folkes. He commented on his blog:

A consultation into the proposals runs until 4th May.