Edward Rowe, an entertainer for Cornwall, has successfully planned and implemented a protest march through Falmouth today where some 600+ people participated. The whole controversy stems from government’s plans to attach VAT to hot foods of very type, excluding freshly baked breads. This is being called the ‘pasty tax’ and UK consumers are quite angry about it.
Since VAT is already assessed on other types of hot food the Treasury feels that this will close a loophole when it is now to be charged on pasties – thus, ‘pasty tax.’ The tax being proposed in the budget announced this past March will mean that a 20% tax will be imposed on these delightful and highly popular pastries.
Not only are consumers protesting this new tax, high street bakers and MPs within all parties are also opposed to this latest effort of government to raise taxes which will hurt average and low wage earners. Protesters contend that whilst upper earners are getting tax cuts he average person is getting taxed literally to death.
Earlier in the week, bakers by the hundreds led a march on Downing Street against these proposed tax hikes. Whether it was a loophole in the law or simply another measure by government to decrease a deficit is not at issue. The main point protesters are arguing is that this hurts bakers as well as the common person.
Top earners will not feel the crunch so again they will not be affected by another round of tax rises. Government can continue to say they are trying to reduce the deficit but at what cost? Consumers are already struggling against high inflation and low wages and this is just another blow they will need to deal with.
