Proctor and Gamble, the manufacturer of Pringles, the crisp brand, has been slapped with future VAT bills of £20m a year after judges at the Court of Appeal decided that the snack was made from potato and is therefore liable for VAT Most foods are exempt from VAT but the category of potato crisp is not. Last year the High Court ruled that Proctor and Gamble was exempt from paying tax on the Pringles brand because the potato content was less than 50%, therefore it did not constitute as a potato snack. But now the Court of Appeal has ruled that 42% of potato content makes its chargeable. The company may now have to pay as much as £20m each year in taxes and £100m for past taxes. Proctor and Gamble said that it will not be paying the £100m for past taxes as it was paying VAT on the snack during the appeal process.