Pubs and restaurants cut prices by 7.5% on Tax Equality Day


Updated on 24 September 2014 | 1 Comment

Around 15,000 pubs and restaurants are reducing prices to promote the benefits of a VAT cut for the hospitality industry.

Today (24th September) marks the latest Tax Equality Day, led by JD Wetherspoon, which aims to promote the benefits of a cut in VAT for the hospitality industry by cutting prices for one day only.

The likes of Wetherspoons, Fullers and Punch Taverns want the Government to cut VAT on food and drink sold in pubs, restaurants and bars to 5%. They argue that supermarkets, who pay no VAT on food and drink sales, have an unfair competitive advantage.

Some 15,000 pubs and restaurants are due to cut prices on their food and drink by 7.5% in an attempt to demonstrate the benefits a VAT cut would have.

Wetherspoons saw an increase in sales of up to 23% across its pubs last year, when the event was known as Tax Parity Day.

The Government did debate reducing VAT earlier this year but it was decided that the shortfall in tax revenue it would create would be too great.

Organiser Jacques Borel, who has successfully campaigned for VAT cuts in several European countries, said: “Our message is clear – a reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.”

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