Subway boss David Cameron challenge’s Prime Minister’s pasty tax

David Cameron, who runs the Subway in Ravensthorpe, is backing the Toast The Tax campaign which has been launched after the government’s u-turn on its ‘pasty tax’.

In this year’s budget, the government announced plans to charge VAT on hot take-away foods, including pasties and sausage rolls.

But in last month’s u-turn, it was announced that hot pasties would only be charged VAT if they were being kept hot.

This means customers do not have to pay VAT on pasties that they have bought hot straight from the oven, or that have been allowed to cool.

Subway’s Mr Cameron thinks it is unfair that people can buy hot pasties without having to pay VAT when he will still have to charge VAT on the hot sandwiches he sells.

He is calling on Prime Minister David Cameron to introduce a fairer system for taxing hot food.

“Hot pasties are now effectively going to be given a tax break, but we will still be subject to the 20 per cent rate of VAT,” Mr Cameron from Subway said.

“We are a local business and we have absorbed that VAT up to now, but we will reach a point where we will have to pass that cost on to our customers.”