UK pubs urged to join in Tax Parity Day

Pubs, restaurants and other UK hospitality outlets are being urged to cut their prices by 7.5% as part of a national day of action aimed at bringing in VAT parity.

JD WetherspoonThe Tax Parity Day is designed to highlight that the UK’s hospitality businesses are paying 20% VAT on all sales, whereas the supermarkets pay virtually no VAT on food.

The campaign is backed by companies including JD Wetherspoon, Brains and Punch Taverns and has called on 25 September to be Tax Parity Day.

The campaign is pressing for a 5% cut in VAT in a bid to boost economic growth and create jobs.

Campaigner Jacques Borel said: “Our aim is to secure more equal tax treatment for food sold through pubs, restaurants and food service operators, compared to supermarkets, which benefit from a zero VAT rate.”

“We are calling on supporters of the campaign to reduce their prices by 7.5% for one day. This is the amount by which we believe that prices would fall if VAT were cut to 5%, on the assumption that 60% of any reduction would be passed onto the customer in lower prices.

“So, for example, the total price of a meal and drinks for a family of four would be reduced from £50 to £54.60 ono Tax Parity Day.”

Borel added that cutting VAT by 7.5% would boost turnover, increase sales and attract more customers: “Our argument 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.”

2 Responses to “UK pubs urged to join in Tax Parity Day”

  1. Carlio Smith says:

    Tax on food and drink is against the founding principles when vat was first set-up. The government are eating away at the basics which hits both consumers and sellers in hard times. it show they do not understand the basics and like everything else over time an inch turns into a mile.

  2. John Mccurdie says:

    Food should be globally vat exempt. Supermarkets should pay little or no vat when buying from there suppliers but the same should be said for pubs and restaurants and that is where it should stop. Its completely ridiculous this “rule for one” business… I do however understand the Vat on alcohol which is probably a good thing for the economy.
    P. S. In your example, from £50 to £54.60 is not a reduction

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