Wetherspoon’s pubs are to cut the price of all food and drinks by 7.5 per cent on Thursday, September 14, to spotlight the support of a eternal VAT reduction within the hospitality enterprise. Prices on the pubs will be reduced for one day only to designate Tax Equality Day.
In Scotland, prices will be reduced on food and non-alcoholic drinks, primarily based on Scottish licensing regulations. A customer spending £10 on food and drinks pays £9.25 on Tax Equality Day.
All food and drinks in pubs are self-discipline to 20 per cent VAT. By comparability, supermarkets pay zero VAT on food and are in a feature to relate that saving to promote alcohol to customers at a reduced price.
Wetherspoon’s founder and chairman, Tim Martin, acknowledged: “The finest risk to the hospitality enterprise is the astronomical disparity in tax therapy amongst pubs, restaurants and supermarkets. Supermarkets pay zero VAT in appreciate of food sales, whereas pubs and restaurants pay 20 per cent.
“This tax support allows supermarkets to subsidise the marketing price of beer. Pubs were under amazing stress for a protracted time, because of this of of the tax disadvantages which they’ve with supermarkets.
“It doesn’t execute sense for the hospitality enterprise to subsidise supermarkets. Customers coming to Wetherspoon’s pubs on Thursday 14 September will derive the price of their food and drinks to be lower than standard.
“We recede the chancellor to make tax equality between pubs and supermarkets.”
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