A Bishop’s Stortford pub will cut its food and drink prices by 7.5% on Thursday September 15 to highlight the benefit of a permanent VAT reduction in the hospitality industry.
Prices at JD Wetherspoon watering hole the Port Jackson in Riverside Wharf will be reduced to mark Tax Equality Day.
Food and drink in pubs is subject to 20% VAT. By comparison, supermarkets pay zero VAT on food and, according to Wetherspoon, are able to use that saving to sell alcohol at a discounted price.
Port Jackson manager Nicole Cottage said: “It’s unfair that supermarkets pay zero VAT on food but pubs pay 20%.
“Pubs have been under fantastic pressure for decades due to the tax disadvantages they have with supermarkets.
“It doesn’t make sense for the hospitality industry to subsidise supermarkets. We urge the Chancellor to create tax equality between pubs and supermarkets.”
