Economist exposes shocking VAT inequality: “20 per cent on potato crisps; zero on tortilla chips!”
Andrew Sentance has got a bee in his bonnet. It’s the height of summer, garden parties are rife and the former Bank of England interest rate-setter has noticed a vast inequality, which hampers his enjoyment of said merriment. The VAT on party snacks. “20 per cent VAT on potato crisps; zero on tortilla chips! Ripe for reform,” he announced on Twitter.
He followed this with a terribly handy list of the VAT liability of “common snacks.” It turns out to be a revealing list. For example did you know Skips have a zero rate of tax, whereas their close cousins, Monster Munch, have 20 per cent? Cheesy Wotsits carry a hefty 20 per cent VAT also, whereas Twiglets escape VAT free.
No guesses for what Sentence will serve up at his next dinner party – tortilla chips will help him save a packet.
Another example of absurdity of UK VAT system: 20% VAT on potato crisps; zero on tortilla chips! Ripe for reform: http://t.co/v6nwNtL5E0
— Andrew Sentance (@asentance) August 10, 2014