'I don't eat in Greggs': Chancellor's pasty tax gets personal

Pasty tax: Hot takeaway food will be hit by VAT after Budget 2012
Pasty tax: Hot takeaway food will be hit by VAT after Budget 2012
Ian Dunt By

George Osborne admitted he did not go to Greggs today, as he justified his decision to impose VAT on hot takeaway food.

The chancellor is under considerable criticism for the move, which saw £30 million wiped off Gregg's shares immediately after the Budget.

"When was the last time you bought a pasty in Greggs?" Labour Treasury committee member John Mann asked Mr Osborne during a questions and answer session in parliament today.

"I can't remember the last time I bought a pasty at Greggs," the chancellor admitted.


Mr Mann then argued that a lukewarm pasty would not be VAT-able in warm weather while it would be in cold weather, because of different ambient temperature.

Customers who order their pastry cold would not be hit by the VAT, but those who choose to have it warmed up would not be so lucky.
 

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