The Cornish Pasty Association (CPA) has added its voice to the growing clamour against the Government’s so called ‘pasty tax’.
Following the Chancellor’s announcement that 20% VAT will be applied to the retail of all hot baked goods including those products currently zero rated, CPA chairman Mark Muncey has urged the Treasury to rethink.
He explained: “We are very concerned about the possible disproportionate effect the introduction of this tax will have on the Cornish economy as twice as many jobs per capita are connected with the food industry in Cornwall than the rest of the UK.
“We have the support of our Cornish MPs but we urgently need a dialogue with the Treasury to discuss other solutions”
“Collectively, the Cornish pasty industry accounts as one of the largest employers in Cornwall therefore, this is going to affect a greater percentage of the Cornish economy than the rest of the country.”
And he said the move could have a disastrous impact on many pasty producers.
“From talking to our retail members, large and small, they simply cannot pass on the 20% VAT in a price increase. Many of our retail members anticipate a 15%-20% reduction in retail sales and some are already talking about the need to close marginal shops, which will lead to job losses.
“Having spent years trying to encourage and bolster the Cornish economy via the food industry, it appears counterproductive to now introduce this tax.
“We have sought advice from our local politicians and we have the support of our Cornish MPs but we urgently need a dialogue with the Treasury to discuss other solutions.”