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Tax equality day – 24th September

Author Damien Wilde
Posted On 15th September 2014

financialsHave you got the 24th September written down in your diaries and importantly; are you lowering your prices on that day?

Many pubs and restaurants in the United Kingdom will be reducing the cost of their food and drink in an industry wide effort to highlight the benefits of slashing hospitality VAT.

15,000 venues have already signed up to take part in what has been dubbed ‘Tax Equality Day’, which has been masterminded and organised by the VAT Club.

During opening hours the participating establishments will cut their food and drink prices by 7.5%.

It is hoped that this will successfully demonstrating the effect that a reduced rate of VAT would have on the cost of eating (and drinking) out and the added trade this would bring to the sector.

“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,” said Jacques Borel, the person who chairs the VAT club.

Last year a similar event, entitled Tax Parity Day, was scheduled and businesses reported an increase in sales by 20%.

Some of the biggest British companies such as Punch Taverns, J D Wetherspoon, TGI Friday, and Everards and Fuller’s have already signed up. All together some 40 high profile names have pledged to take part, as have a number of smaller entities and independent venues.

 “We are delighted with the response from the industry and expect many more companies and individuals to show their support for Tax Equality Day between now and the day itself,” Borel added.

The current VAT rate in pubs and restaurants stands at 20%, yet supermarkets have the luxury of being afforded a zero VAT rate. Understandably the industry is not happy at this disparity and campaigners have long argued that this puts the entire hospitality sector at a monumental disadvantage.

However, despite cross-party support in Parliament, the government has so far steadfastly refused to reduce VAT, saying that such action could create a revenue shortfall.

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