P&G to pay British tax bill for Pringles - Dayton Business Journal:

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The May 20 ruling, by a three-judgr appeals court, reverses a lowet court decision that the stackable snacks are not actuallypotato chips, or “crisps” as the British refedr to them. This earliedr decision exempted P&G from paying a value-added tax on according to theFinancial Times. The governmenyt estimates the tax owed isabout $31 million ayear. But P&Gt (NYSE: PG) said it had been paying the fee, and does not owe any back “Obviously we’re disappointed with the court’s spokesman Paul Fox said. “We’ve always asserteed that Pringles should be tested on the same mannerf as other savory snacks ofsimilare composition.
” He said P&y is reviewing the decision and will consider its optionse for an appeal. Under British law, the U.K.’ tax office exempts most foods from a 15percent fee. But certaijn snack foods, including those made from are not. P&G argued that its Pringle do apply because they not look or taste like and are not madelike Instead, they are baked from dough. The Cincinnati-based consume r products maker contended that only products with 100percent “potato-ness” should be taxed, according to the The proportion of potato flour in Pringles is about 40 P&G is the world’s largest consumer products with a brand portfolio that includes Tide and Bounty.