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The new finance bill replaces the zero-rated tax provision on essential commodities with tax-exempt status.

“The fact that a poppadom made to a traditional recipe from gram flour without potato is zero-rated for VAT purposes does not mean that a poppadom made to a traditional recipe which includes potato must also be zero-rated,” the judge said.

Retailers and brands that backed last year's campaign to make period underwear zero-rated for VAT pledged they would pass on the tax cut in full to customers.

Food and children's clothes are deemed essentials, and are zero-rated.

VAT is payable on confectionery but products can be zero-rated if they are used for cooking.