Steve McCabe MP visited Subway Sandwiches to hear about their work with Heart Research UK and their concerns about the ‘Toast Tax’.
Subway is often seen as just another hot food takeaway but they work hard with Heart Research UK to try and ensure that they produce healthy products as well as raising money for the charity. They offer a range of foods containing low fats and highlight those products with a Healthy Heart Symbol on their menu.
Steve met with Medhi Bahram Choobin, the franchisee of Subway at Maypole, and Mr Daljit Nahil who is the Subway Development Officer for the region, whotold Steve of their concerns about the Chancellor’s ‘Toast Tax’ which dates back to the infamous omnishambles budget. This has resulted in a situation where the government argues that food which has been heated for the purpose of cooking and is cooling down naturally, even if it happens to be hot at the time of sale, is zero rated but Takeaway food that is heated e.g. a toasted sandwich is subject to VAT. At present Subway absorbs this additional VAT but it does mean that someone buying a hot pasty in one baker’s shop gets a VAT free product but a toasted sandwich is subject to VAT.
Steve McCabe said “I enjoyed my visit to Subway at the Maypole. Medhi and his staff obviously work incredibly hard and provide a really good range of products.
“I find it incomprehensible that it is beyond the wit of all those Treasury officials to come up with a VAT formula which creates a level playing field for toasted sandwiches. At a time when we desperately need jobs and need to encourage small businesses, this is the kind of thing that designed to finish them off.”