OrbitalDawn
Ulysses Everett McGill
Subway bread is not bread, Irish court rules
Judge finds that sugar content of US chain’s sandwiches exceeds stipulated limit and they should thus be classified as confectionery
In a judgment published on Tuesday, the court ruled that the bread served at Subway, the US chain that hawks giant sandwiches in 110 countries and territories, could not in fact be defined as bread because of its high sugar content.
The ruling followed an appeal by Bookfinders Ltd, Subway’s Irish franchisee. The company had argued that the bread used in Subway sandwiches counted as a staple food and was consequently exempt from VAT.
However, as the court pointed out, Ireland’s Value-Added Tax Act of 1972 draws a distinction between staple foods – bread, tea, coffee, cocoa, milk and “preparations or extracts of meat or eggs” – and “more discretionary indulgences” such as ice-cream, chocolate, pastries, crisps, popcorn and roasted nuts.
The clincher was the act’s strict provision that the amount of sugar in bread “shall not exceed 2% of the weight of flour included in the dough”.
