Pubsetto slashVAT onfood anddrink
A Stirling pub is to cut the price of all food and soft drinks to highlight the benefit of a VAT reduction.
The Crossed Peels in Spittal Street will drop its prices by 7.5 per cent on Wednesday September 20 as it backs a national Tax Equality Day, aimed at highlighting the benefit of a VAT reduction in the hospitality industry.
Prices at the Wetherspoon pub will be reduced for one day only.
At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on all food.
As a result, supermarkets are able to use that saving to sell alcohol at a discounted rate.
The pub’s manager, Stephen Reynolds, explained: “We are proud to support the campaign to reduce the level of VAT within the pub industry.
“Customers coming to the pub on Wednesday September 20 will find that the price of their food and soft drinks is lower than normal.
“We are keen to highlight the amount that customers could save if VAT in pubs was lowered permanently.
“So, for example, the total price of a meal and soft drinks for an individual would be reduced from £10 to £9.25 on Tax Equality Day.
“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 and help the high street of which pubs are an integral part.”