THE OWNER of Worksop’s Subway has slammed a tax on hot sandwiches as ‘unfair’ after seeing the Government’s u-turn on Pasty Tax.
The fast food chain say that stores across the country are in danger of closing after swallowing the 20 per cent tax when it was introduced in 2007.
It says Chancellor George Osborne is wrong to scrap the unpopular VAT on pasties but leave it on hot sandwiches.
Matt Hudson, owner of Subway on Bridge Place, warned the tax is ‘potentially ruining businesses’.
“We feel we are being unfairly treated but it’s the law that needs to be changed,” he said.
“We had to put our prices up a couple of years ago to absorb some of the costs we had over our head.”
“I know some franchises are really struggling and some people are going out of business.”
“We (at Worksop) are doing all right. We do not make a great deal on it but we are okay.”
Matt owns another Subway in Sheffield but has had to sell both Gainsborough and Retford stores in recent months.
“It’s not just the ‘toast tax’ - there are contributing factors like the recession meaning there’s not much disposable income around,” he added.
“From a customer point of view, most of them I talk to are not aware of the tax situation.”
“We just want a level playing field. We want it to be fair.”
Subway, who are leading the ‘Toast the Tax’ campaign, want people to show support by taking part in an online petition.
But Bassetlaw MP John Mann, who was against the ‘nonsensical’ tax increase on hot pies and pasties in March, said Subway were ‘just trying it on’.
He said: “Subway are far too late to the game. This issue was first raised with me in March, three months ago.”
“They should have got their act together to oppose George Osborne’s tax at the time.”