British court rules yes, Pringles are in fact chips

updated 3:56 p.m. ET May 20, 2009

LONDON - Pringles' tax status has been crunched by a trio of British judges.

The Court of Appeal judges decided Wednesday that the snack is a potato chip — and that means it's liable for Britain's Value Added Tax.

In Britain, most food isn't subject to the 15 percent national tax, but potato chips are.

A lower court had decided Pringles weren't chips and would remain exempt from tax. But the higher court judges disagreed. They said the snack contains "more than enough potato content" to be considered a chip.

A spokeswoman for Pringles' manufacturer Procter & Gamble Co. said the company has been paying the tax protectively and so does not owe the taxman.

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