| 19 April 2012 |
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'Pasty Tax' Rebels Defeated |
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An attempt to overturn the so-called ‘pasty tax’ – a tax on takeaway food – has been defeated by the government.
A group of MPs had tried to exclude VAT from freshly baked products where no attempt was made to keep them hot.
Attempts to exempt static caravans from VAT and to undo a cut in the top rate of income tax were among others to fail during debate on the Finance Bill.
But Labour says it will vote against a freeze on age-related allowances - the so-called "granny tax".
A number of protests have been launched since the new Budget proposals were announced. The ‘pasty tax’ has faced opposition with Greggs, Labour and some Conservative and Lib Dem MPs calling for a re-think. They have argued that the tax increases will threaten jobs in the industry and increase prices for consumers by up to 20%.
The government defeated the latest move by a margin of 35 votes.
Hundreds of bakers have said they will march on Downing Street next week in protest over the tax changes.
(H)
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