Pringles ruled as crisps

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Mayor of the city and county of Limerick, Cllr Gerald Mitchell cuts the ribbon at the opening of the new Tesco store on Kileely Road, Limerick, Pictured with with store assistants Rachel Judge and Gemma Morrison, store manager, Michael Fitzgerald and Dr. Pat Daly, chief executive of Limerick City & County Council. Pic: Don Moloney

Proctor & Gamble loses its tax-exempt status for Pringles, following a UK appeal court ruling that the popular snacks are in fact crisps

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Brand Central

12 June 2009

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PringlesHaving secured a hard-won verdict in its favour last year, Pringles has lost its tax-exemp status, when a UK court of appeal ruled that the popular snacks are in fact crisps. Proctor & Gamble had succeeded last year in convincing a British judge that Pringles contain too little actual potato content to be considered a potato snack product, and are hence liable for the 15% VAT on snack foods. The judge interpreted the 1994 VAT Act which states the product must be “wholly, or substantially wholly, made from the potato” to be classified as a snack product.

Last month however, the UK Court of Appeals judges declared that at around 42% Pringles contain “more than enough potato content” to be considered a crisp. Procter & Gamble says it does not now have an outstanding VAT bill as it chose to continue paying the tax all along.

 

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