THIS IS WHY YOUR SUBWAY SANDWICH WILL COST YOU A LITTLE MORE THANKS TO NEW TAX
Subway has been hit by the new taxation laws in UK, where any hot and toasted subs will be imposed a 20% VAT. Everybody knows that Subway is one of the favourite stopovers for
quality, fresh, well-wrapped and hot fast food that now goes for an extra cost thanks to new VAT law that was proposed by George Osborne in 2012.
Subway’s effort to protest the new imposed charges has been in vain, even after trying to re-brand their toasted subs to “hot bread sandwiches’ in order to protect the interest of their customers without increasing the price. A spokesman from subway said: “We have been trying to challenge this VAT law since 2012 in order to protect our customers. Subway franchisees have been absorbing the VAT cost, charging a single price for food, whether hot or cold or eat-in or take-away.”
A standard 6 inch sub could cost as much as £3.69 before the introduction of “pasty tax” on VAT. This means that as per now, the customer who wants their sub to be heated up should
add a 20% (equivalent to 69p) which sums up to £4.18 for a single sandwich. Having a sandwich toasted has become a standard procedure to many customers who expressed their unhappy thoughts about the new prices on social media. “Absolutely ridiculous that Subway now charge for toasted bread.” a customer pointed out on twitter. “What next? Charging us to use the bathroom? #subway”, another one expressed his anger. It should not be a surprise that some customers have not noticed about the price changes, saying that they are just consuming their subs. “Has there been a recent change in VAT law I’m not aware or are Subway just taking the ****?”.
A customer on HotUKDeals said: “Just saw a sign in my local Subway saying they’ll
shortly start charging 20% VAT if you ask for your sandwich to be heated
“Am never going again” said a fuming customer concerning the new tax rules.
Another one commented “What is this all about? Bold strategy from them. It’s the quickest way to annoy people.”
The rise of charges on heated subs has forced subway to lower the prices of products that do not attract VAT. “Currently Subway stores in the West Midlands are testing a different structure for menu-pricing. The dual-pricing menu is similar to what customers see on other high-street chain menus, which ensures that customers pay the lowest price for products which do not attract VAT.” Subway spokesman said in a statement.
This new tax rules which were made effective as from 9th August 2017 are said to be
politically affiliated. It came as a surprise to the Subway customers across all the cities in the UK who are in need to refuel when lunchtime approaches. Since there is nobody has the will of taking a cold meal deal, they perhaps have no option than to have their sandwich or sausage roll toasted and warmed. The pasty tax (2012) also indicated that you have to pay some extra cost if you have to eat in. in contrast to this cold food are not taxed. This could have an advantage to only those who have their sub as a take away to warm in their
The introduction of the new VAT rules on hot and toasted sandwiches is just an indication that customers will lower their demand on the product and some will even look for other substitute products. An alternative idea that subway can opt to do in order to retain their customers is to improve the quality of their sandwiches and introduce some offers. It is clear that this pasty tax is against the will of people.