Cornish economy to be blighted by pasty tax

The Cornish Pasty Association (CPA) has spoken out about how the 20% tax on hot takeaway food could affect profitability and jobs in the region.

Phil Ugalde, CPA founder and owner of Bodmin-based Proper Cornish Food Company, told British Baker: “The VAT will have a disproportional effect on the economy in Cornwall. The government has put millions of pounds into the Cornish economy making progress to raise its value, and now they are knocking us straight back down.

“Not only that, we employ twice as many people within the foodservice sector in Cornwall than the nation as a whole.”

Ugalde explained that sales and production of the traditional Cornish pasty, which gained Protected Geographical Indication (PGI) status from the European Commission back in March 2011, could be affected by the VAT.

“The Cornish pasty is a high-value product, containing fresh ingredients, not highly processed, and ultimately is a handmade product, requiring skill and labour to make.

“In addition, the proposed VAT on the Cornish pasty could mean a 15-20% reduction in sales. It seems inevitable that the tax will lead to job losses and lower profitability.”

The CPA has said it is on board with British Baker and the National Association of Master Baker’s campaign to ‘Say no to the pie tax’, which has accumulated almost 2,000 signatures online through an e-petition.

JOIN BRITISH BAKER’S CAMPAIGN

You can join our joint campaign with the National Association of Master Bakers, called ‘Say NO to the 20% pie tax’, opposing the government’s decision to place VAT on hot products by:

Liking the Facebook page: Say NO to the 20% Pie Tax

Joining the debate on Twitter: @BritishBaker and hashtag #NOpietax

Signing the e-petition: http://epetitions.direct.gov.uk/petitions/32044

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