Wetherspoon plans to reduce food and beverage prices by 7.5% today to emphasize the impact of taxes on their operations. This move, referred to as “tax equality day” by Wetherspoons, aims to showcase the advantages of a permanent VAT cut for the struggling hospitality sector.
The initiative, known as tax equality day, aims to illustrate to customers the disparity in how tax is applied to alcohol and food sold in pubs versus supermarkets. On September 18, customers at Wetherspoon pubs will save 75p for every £10 spent, as food and drinks in pubs are subject to 20% VAT, while supermarkets pay zero VAT on food.
Wetherspoons argues that supermarkets leverage this tax advantage to offer discounted alcohol prices to customers. During the pandemic, VAT rates for the hospitality industry were reduced to support struggling businesses. VAT was initially lowered to 5% in July 2020, increasing to 12.5% from October 2021 to March 2022.
Tim Martin, the founder and chairman of Wetherspoon’s, highlighted the tax inequality among pubs, restaurants, and supermarkets, emphasizing that pubs face a significant tax disadvantage compared to supermarkets. He called for a VAT cut to 12.5% to help pubs, bars, and restaurants thrive, invest, and create jobs.
On September 18, customers visiting Wetherspoon’s pubs will enjoy lower prices for their food and drinks. Mr. Martin’s one-day discount initiative has received support from major hospitality organizations like UKHospitality, British Beer and Pub Association, and the Campaign for Real Ale (CAMRA).
