VAT ON HOT TAKE-AWAY FOOD

Motion Text

That this House notes with concern that supermarkets are permitted to sell items of hot food, which are available to consumers as suitable for immediate consumption, at zero-rated VAT, while small shops selling hot food, such as fish and chips, have to charge 17.5 per cent. VAT on what they sell; is further concerned that this additional charge is extremely detrimental to the many smaller hot food outlets across the country, in putting them at a disadvantage compared with the large supermarket chains, and also to consumers in rural areas who may not have the option of going to a supermarket and thereby paying less for hot food under current arrangements; and calls on the Government to create a level playing field for supermarkets and small shops.