Pringles ruled as crisps
Proctor & Gamble loses its tax-exempt status for Pringles, following a UK appeal court ruling that the popular snacks are in fact crisps
12 June 2009
Having 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.