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Pringles not potatoes says judge
Manila News.Net
Saturday 5th July, 2008
A High Court judge in London has ruled that Pringles, the tubed snack food, are not potato crisps.
In his ruling, Mr Justice Warren said the crisps were an 'unnatural shape.'
Apart from that, he said, the potato content is less than 50%.
Mr Justice Warren ruled that Pringles were not made from potato as set out in the definition laid down by the 1994 VAT Act.
To be subject to VAT, a product 'must be wholly, or substantially wholly, made from potato'.
As a result, Pringles are now free from Value Added Tax which, as a result, should save manufacturer Procter & Gamble millions of pounds each year.
P&G had gone to court to challenge a tax decision that the Pringle was subject to the standard 17.5% rate of VAT.
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