An importer of Italian products wants the High Court to re-define crackers and flatbreads, saying it is missing out on the tax-free importation of a flatbread because it is being wrongly deemed a cracker.
Under Australian tax law, bread is GST-free to import into Australia, while crackers are taxed.
Lansell House has been importing Italian products into Australia for over two decades and says its Peretto mini ciabatte Italian flatbread, which is sold all over the country in all the major supermarkets, is not a cracker.
Director of Lansell House, Alfred Abbatangelo, told Food Magazine the classification of the bread as a cracker is ridiculous.
“The issue is that the ATO haven’t really recognized that there are other breads other then the common ones out there people are commonly buying.
“Of course the issue is the size and because it cracks, it is therefore deemed as a cracker.
“The issue is that our product is not laminated, whereas crackers got through a lamination process to arrive at the density, taste and flavour of crackers.
“Our product tastes very much like a bread”
Abbatangelo said the company will argue for the case to be heard on Friday, and the implications will spread further than just Lansell House’s products.
“We’re going to court on Friday to argue that we believe it should go to court,” he told Food Magazine.
“The argument was that it was also sold in Coles and Woolworths amongst other savory products, and because it was sitting alongside a cracker, it was deemed to be a cracker.
“Breadsticks and the like are deemed bread and are GST free.
“I should mention that Grissini bread sticks are GST free too.
“Our product is made just like any other fresh bread product, it’s only that it’s made thin and baked to a dry bread.
“We’re hoping that they’ll keep an open eye to this, I think its of national importance, because it will have ramifications for the rest of the savoury products on market and so were hoping we’ll get a fair hearing and be allowed to contest it in the High Court”