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The importance of the issue, regardless of whether it is bread or not, has to do with the fact that this product does not pay VAT in that country, while if the dough is considered cake, biscuit or something else, it would pay the consumption tax, which which would have a direct impact on the business, notes the British newspaper Independent.
The media points out that 10% of the weight of the bread dough in the fast food chain is sugar, when said amount of sweetener cannot exceed 2% to be considered bread and that it does not generate the aforementioned tax, which would ultimately reduce the price at which the final consumer acquires it.
The British newspaper The Guardian, on the other hand, says that this is understood from a tax point of view, but asks if a teenager, a target group of this type of food, cares if it has a lot of sugar or not, or if it is bread or not.
The media mentions that Subway offers whole grain breads, that they are breads, but that they are all “disgusting”, while ensuring that the “loaves not loaves, or sub-loaves” should, as the Irish court says, to be considered more a cake than a bread.
In Ireland, as Forbes Colombia recalls, there is a 1972 law that differentiates basic foods such as bread, tea, coffee and milk, and other “baked and processed products”, such as confectionery, that do have VAT and are considered sumptuous.
“In this way, other products such as certain types of pasta or industrial cakes (…), could not be labeled as staple foods to be tax free,” says Forbes
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