PROCTER & Gamble (P&G) will have to pay out tens of millions of pounds in VAT after it lost a legal battle over its Pringles snack yesterday.
The Court of Appeal found in the Inland Revenue’s favour, saying that Pringles are a potato snack, which means they’re liable for VAT.
Last summer, a High Court judge ruled that the food should be tax exempt.
But the decision has been overruled. Pringles, which are 42 per cent potato, will now cost P&G £20m a year in tax, as well as a £100m pay out for the past.