UK court: Pringles are potato-light, tax-free

LONDON

Friday, 04 July 2008 15:48:53

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Britain's High Court has ruled that Pringles are not a potato snack, and thus are not subject to value-added tax.

Friday's ruling by Justice Nicholas Warren is expected to save millions for the manufacturer, Procter & Gamble Co.

Warren overruled a VAT Tribunal decision that Pringles should be subject to the 17.5-percent tax because it met the definition of "potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch."

The judge found that Pringles were only 42 percent potato, and thus exempt.

P&G spokeswoman Marina Barker says the company is pleased with the ruling.