Britain rules: Pringles are potato chips

May 20, 2009 at 5:40 PM

LONDON, May 20 (UPI) -- An appeals court in Britain said Wednesday that Procter and Gamble's snack treat Pringles were, technically, potato chips and subject to sales tax.

The ruling has a potential to require the company to pay $155 million in back taxes and $31 million per year, but a Procter and Gamble spokesperson said prior arrangements with Her Majesty's Revenue and Customs meant there were no back taxes due, The Daily Telegraph reported.

Foods are rarely subject to sales tax in Britain, but potato chips happen to be singled out as an exception.

The court heard arguments on whether or not Pringles, made 42 percent from potato and 33 percent from fat and flour, contained enough "potatoness," to be considered a potato chip, or crisp.

The court decided there was "more than enough potato content for it to be a reasonable view that it is made from potato," the Telegraph said.

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