If you don’t already know Tax Equality Day is simply a campaign to level the playing field when it comes to the disparity of VAT between the on-trade and supermarkets!
Tax Equality Day enjoys great support from leading trade organisations such as the Association of Licensed Multiple Retailers (ALMR) and the British Beer and Pub Association (BBPA) and the 900 pub estate Wetherspoons. Last year an estimated 15,000 venues took part.
A key report by the ALMR and hotel association HOTREC revealed that lower levels of VAT in the hospitality industry is vital in ensuring competitiveness as a tourist destination, as well as encouraging economic growth and, in turn, creating more jobs.
Brigid Simmonds Chief executive of the BBPA said “Tax Equality Day is a great opportunity to shine a light on how unfair VAT is for both pubs and the wider hospitality sector. If you buy a meal in a supermarket you pay no VAT, but in the pub you pay 20 per cent.
“Even a small drop in the VAT rate for eating out, to 15 per cent, would create 78,000 jobs, and would be a big boost for the economy. I hope pubs will get behind the campaign.”
Tim Martin, Chairman of Wetherspoons, continued:
“Pubs suffer a huge disadvantage paying about 16 pence in business rates per pint versus about two pence for supermarkets. In addition there is a huge VAT inequality and unfairness.
“A reduction in the level of VAT on a long-term basis will create a level playing field and generate growth and jobs in an important and vital industry – especially in beleaguered high streets.”
Kate Nicholls, Chief Executive, ALMR, added:
“Two thirds of customers have said that they would spend more if VAT was lower and just over half said that they would spend more on eating and drinking out.
“As business rates and rising inflation continue to squeeze the sector, a cut in VAT not only levels the playing fields in terms of fairness, it is also a simple way to help boost a vital engine of economic growth.”
So we would urge you to demonstrate how important the independent hospitality sector is by joining tax equality day, and lowering your VAT just for one day by 7.5%
Let all your customers know and encourage them to support the day by downloading a Tax Equality Day poster today!