You Say Potato, I Say PotatoIn 2009, Proctor & Gamble, the manufacturer and distributor of PringlesTM found out the expensive way that Pringles are deemed a potato product subject to the UK 17.5% Value Added Tax.

Having successfully argued that Pringles should be exempt from the tax on the basis that the Pringle is a moulded dough product rather than a potato chip product (or potato crisp if you are from the UK) and that the Pringle is made from less than 50% potato ingredients, the taxman subsequently appealed. 

On appeal, the taxman won resulting in back taxes due of an amount in excess of $150,000,000.

Pringles are made from 42% potato flour with other main ingredients including wheat starch.


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