Wetherspoons has announced it is to cut all of its prices by 7.5% on Wednesday 20 September as part of ‘Tax Equality Day’.
The day aims to highlight the benefits of reducing VAT in the hospitality industry. Pubs are currently charged 20% VAT, compared with supermarkets which benefit from zero-rate VAT whilst selling similar items.
Wetherspoon’s chairman, Tim Martin, said: “We are proud to support the campaign to reduce the level of VAT in the pub industry. On Tax Equality Day, customers in our pubs will find the price of their drinks and food to be lower than normal. We are keen to highlight the amount which customers would save, if VAT in pubs were lowered permanently.
“So, for example, the total price of a meal and drinks, for a customer, 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. Creating tax equality among pubs, restaurants and supermarkets will fulfil many government objectives.
“It will create more jobs and raise the amount of taxes which the government receives, since pubs and restaurants pay more taxes and create more jobs than supermarkets do. It is a win-win situation for the government and our industry.”