HOT IS COLD AND COLD IS HOT….MAYBE

In the last budget, hot pasties and pies were to attract Value Added Tax for the first time. Following an outcry, the rule was modified just a little. I think I am right in saying that pies and pasties that had been cooked, but were at, or, below, the ambient temperature would not attract the new tax. The assumption being that the ambient temperature would be rather cool, if not cold. Anything that was hot would still be taxable.

A local baker shop that has its bakery about a mile away, had a large notice in its window asking its customers to note: From now on hot and cold pies will be the same price. :.

The baker shop includes a small basic, totally unsophisticated cafe. I have never seen a hot-plate in it, just a microwave oven. there are cold drinks from a refrigerated cabinet, coffee is the instant variety, and tea is…erm tea.

So, what is going on. The immediate assumption is that the price of the cold pies has been increased. On the other hand, it could be a clever little ruse to attract attention. Perhaps there are two morning deliveries of pies to the shop. An early one for the morning shoppers, and another fresh-from-the oven delivery, still very warm but cooling down, around about midday. If so, the arrangement would be perfect for the lunch time trade. And the status quo would be preserved.

:>

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