Pringles are potato chips after all, judge rules

The UK taxman has won the right to charge a VAT bill worth 20p for every pack of Pringles sold after a landmark court case defining the product as a crisp.

The manufacturers Procter &Gamble has been arguing for many years that the Pringle should not attract the tax because it was a savoury food rather than a potato crisp.

Most food does not attract the sales tax, which has been temporarily cut from the standard rate of 17.5per cent to 15per cent.

The victory for the taxman is a blow for Procter &Gamble and fans of the snack.

For if P&G had been successful the company, which has been charging VAT pending the result of the case, could have been in line for a massive rebate of £100million.

Separately, moving Pringles to the VAT-free category could have delivered a saving to shoppers of around 20p per 155g tube, which currently costs £1.45.

The decision was announced by the Court of Appeal, which overturned an earlier ruling backing Procter &Gamble in its legal battle with HM Revenue &Customs.

Procter and Gamble said it is considering the decision and did not rule out making an appeal.

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