UK: Grocers' hot takeaway food set for VAT levy
Hot takeaway food sold in UK supermarkets look set to eb levied with VAT, as part of proposals in the Government's Budget statement.
Chancellor George Osborne said he wanted to look at "some of the loopholes and anomalies" in the tax system and products including sausage rolls and rotisserie chicken could be hit.
"Hot takeaway food on high streets has been charged VAT for more than 20 years but some new hot takeaway products in supermarkets are not," Osborne said yesterday (21 March). The proposal is set to come into force in October.
Analysts suggested that the plan would have little impact on supermarkets, although one indicated Morrisons could be the most impacted.
"The extension of a levy to hot food will have a pretty de minimus impact on the supermarkets, in our view, given the measured participation of hot chicken and pork lines to total store sales. With its Market Street format, Morrisons may be slightly more impacted by price rises in these sub-categories than its competitors," Shore Capital analyst Darren Shirley said.
Tesco CEO Philip Clarke today (19 September) praised predecessor Sir Terry Leahy for pushing the UK's largest retailer into the online channel....
Morrisons, the UK's fourth-largest grocer, has said it will bring in "larger and more consistent" unit pricing to help "restore trust" in prices....
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