Java cakes are orange-?avoured, biscuit-sized cakes with chocolate coating. I now see them in supermarket shelves across Dubai. What is the connection between Java cake and taxes?
To learn that, we have to go back to a real-life story from the 1990s. The elaborate UK VAT rules require that cakes and biscuits are taxed at zero-rate as they are considered essential items. However, chocolate-covered biscuits are considered a luxury and therefore taxed at a standard rate of 20 per cent (previously 17 per cent)....
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