The Supreme Court of Ireland has ruled that the bread baked and sold at Subway cannot be legally defined as bread. The reason? It has too much sugar.
The ruling came in a tax dispute brought by Bookfinders Ltd., an Irish Subway franchisee, which argued that some of its takeaway products - including teas, coffees and heated sandwiches - were not liable for value-added tax.
A panel of judges rejected the appeal Tuesday, ruling that the bread sold by Subway contains too much sugar to be categorized as a “staple food,” which is not taxed.
“There is no dispute that the bread supplied by Subway in its heated sandwiches has a sugar content of 10% of the weight of the flour included in the dough, and thus exceeds the 2% specified,” the judgement read.
The judgment has stated that the law makes a distinction between “bread as a staple food” and “fancy baked goods.”
Subway disagreed with the characterization in a statement.
“Subway’s bread is, of course, bread,” the company said in an email. “We have been baking fresh bread in our restaurants for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.”
What are your thoughts about this one?
(Image Credit: Cxshawx/ Wikimedia Commons)