Procter & Gamble, the consumer goods giant, has spoken of its satisfaction with a UK court decision that ruled its snack food brand Pringles are not potato crisps.
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The company, also home to brands including Gillette razors, Daz washing powder and Head and Shoulders shampoo, is likely to save millions of pounds after the ruling at the UK High Court.
P&G had taken legal action over a UK tax ruling that stated Pringles should be subject to the 17.5% rate of VAT because the brand was a “potato crisp product”.
The company claimed the taste and look of Pringles meant the product should not have been subject to the standard rate of VAT.
The judge, Mr Justice Warren, said Pringles did not meet the necessary criteria to be subject to VAT due, in part, to the product containing less than 50% potato.
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By GlobalDataA spokesperson for P&G told just-food: “We are pleased with the High Court ruling that Pringles should be appropriately categorised for VAT alongside other savoury snacks with which it competes.”
