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

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The May 20 by a three-judge appeala court, reverses a lower court decision that the stackablwe snacks are not actuallypotatol chips, or “crisps” as the British refer to This earlier decision exempted P&b from paying a value-added tax on Pringles, accordiny to the Financial Times. The government estimates the tax owed isabourt $31 million ayear. But P&G (NYSE: PG) said it had been payinh the fee, and does not owe any back taxes. “Obviously we’rd disappointed with the court’xs decision,” spokesman Paul Fox said. “We’ve always asserted that Pringlez should be tested on the same mannef as other savory snacks ofsimilar composition.
” He said P&Gf is reviewing the decision and will consider its options for an appeal. Under Britishg law, the U.K.’s tax office exempts most foods from a 15percen fee. But certain snack foods, including those made from potatoes, are not. P&yG argued that its Pringles do apply because they not look or tasterlike chips, and are not made like chips. Instead, they are bakee from dough. The Cincinnati-based consumer products maker contended that only products with 100 percent “potato-ness” should be according to the Times.
The proportion of potato flourt in Pringles is about40 P&G is the world’s largest consumer products maker, with a brand portfolio that includex Pantene, Tide and