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Pasty tax to be scrapped

Plymouth bakers are celebrating as the so called "pasty tax" looks set to be scrapped.

Plans to charge VAT on baked goods like pasties were announced as part of the Chancellor's budget in March.

There was outrage from bakers in Plymouth, wider Devon and Cornwall who argued it would hit sales of pasties and could result in job losses in the region.

Now the government's backtracked - saying it won't charge VAT on food that's heated then allowed to cool naturally.

John Endacott's a tax partner at Francis Clark - he organised a pasty tax summit and says it appears the government are doing exactly what campaigners wanted by recognising that pasties should be treated differently to other takeaway foods. He says this will still mean some changes for bakers to make the system fairer.

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