Morrisons is to ask the Government if it needs to rename the traditional Easter treat ‘Cold Cross Buns’.
Its in-store bakers are gearing up to make over 900,000 tomorrow, with Good Friday being the day the spiced buns are traditionally eaten. However, this time next year the freshly made buns will have to be completely cooled down before customers are able to buy them – or they could face paying VAT. The Government will not be applying VAT to bread and hot cross buns will escape the tax rise if they are defined as a bread product.
“We really hope the Government sees sense and does not force us to charge VAT on our hot cross buns,” says Guy Mason, Head of Corporate Affairs at Morrisons.
“Our in-store bakers are all set to meet consumer demand for the iconic Easter treats and our customers love the fact that they can pick them off our shelves shortly after they come out of the oven. Due to the changes that the Government is proposing we might have to rename them Cold Cross Buns next Easter.”
All of the ‘spiced buns’ Morrisons sells are made from scratch, by its own bakers. After coming out of the oven and cooling down the buns are still at an average temperature of 30°C. This is likely to be above ambient temperature and therefore make the product eligible for tax under the guidelines.
It predicts that it will sell over six million this week. In addition, the retailer expects to sell over 11.6 million Easter eggs (excluding mini and filled) as well as the equivalent of 100,000 whole salmons.
Published 05/04/2012