Chancellor Puts Forward New Proposal Regarding VAT Charges On Hot Foods

Hot-FoodsAccording to sources, hot takeaway food will soon be subjected to taxes.

It has been revealed that the hot food bought from bakeries and supermarkets will be charged at 20% VAT. The Chancellor, George Osborne has increased the costs of all hot takeaway foods.

He stated that the increase was necessary in order to end up the deviation from what was standard, normal or expected. Moreover, he expects that this new proposal will further simplify the tax rules.

This would increase the cost of 90p hot sausage roll to 108p and 30p more will be added to pasty costing £1.49. According to statistics, if the increase continues to be in this way, it will raise £125million more by the end of this year and £350million a year by 2016.

However, the proposal sent to the retailers was creating confusion as the VAT charges were applicable only if the food sold was hotter than the surrounding air temperature, at the time of sale. But the case doesn’t stay true when the same items were sold cold; the VAT charges were not applicable at that time.

However, the proposal is set to be implemented by this October. Moreover, VAT charges will even be introduced on sports drinks.