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  1. I recently watched the video about the court case on Jaffa cakes, and I began to wonder why cakes are considered so essential that they're exempt from Value Added Tax. It might have something to do with teacakes, and not wanting to discourage the population from drinking tea by taxing something commonly consumed with it, but if so, why does this also apply to cupcakes and cakes like pound/sponge cake? I tried looking this up with no luck.