BAKERIES and fresh food shops said they would fight plans to impose VAT on the sale of hot food which would lead to higher prices at the till.
George Osborne announced the plans on Wednesday as part of a wider move to address tax loopholes and anomalies.
Hot food bars and bakeries will no longer be exempt from the 20% tax, meaning consumers will have to pay more for items such as sausage rolls, pies and rotisserie chicken.
The move, which will be introduced from October 1, will see 18p added to the price of a 90p Greggs sausage roll and 30p added to a £1.49 pasty, while a £5 hot supermarket rotisserie chicken will rise by £1.
A spokesman for supermarket Morrisons said: "This is an additional tax on our customers at a time when their budgets are already hard-pressed."
A Greggs spokesman added: "We do not believe our freshly baked savoury products should be subject to VAT and we will be making strong representation to the Government regarding the proposed changes."
Scottish Bakers, the trade association for bakers in Scotland, claimed the move was "incredibly worrying" for both consumers and the industry.
Alan Clarke, chief executive of the association, said: "Lots of bakers throughout Scotland are trying to prepare fresh food and we want people to eat it while it's hot, while it's at its best."
Mr Clarke also asked whether a freshly baked sausage roll would be subject to VAT until it cooled down.
However, Edinburgh-based Scotmid said the move would not affect its customers as its hot food was already subject to VAT. HM Revenue and Customs says the tax will raise £50m.
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