Pubgoers countrywide will be able to enjoy bargain price beer and food for one day tomorrow

PUB chain Wetherspoons will cut prices by 7.5 per cent just for tomorrow. It is protesting against different VAT rules for pubs and supermarkets. Usually, pub food and drink has a 20 per cent rate but supermarkets pay nothing on food, letting them subsidise cheap booze. Chairman Tim Martin said: “Taxes should be fair and […]

PUB chain Wetherspoons will cut prices by 7.5 per cent just for tomorrow.

It is protesting against different VAT rules for pubs and supermarkets.

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Pub VAT went down to five per cent in July 2020 but will rise to 12.5 per cent next month[/caption]

Usually, pub food and drink has a 20 per cent rate but supermarkets pay nothing on food, letting them subsidise cheap booze.

Chairman Tim Martin said: “Taxes should be fair and equitable.

“However, it is unfair that supermarkets pay zero VAT on food, but pubs and restaurants, in normal circumstances, pay 20 per cent.

“We urge the chancellor to create tax equality between pubs and supermarkets by making permanent the current VAT régime for pubs.”

At present, all pub food and drinks are subject to five per cent VAT as a result of the temporary VAT cut by the chancellor in July 2020.

But this is set to stop on Friday 1 October, when the VAT rate will rise to 12.5 per cent, with the aim of returning to 20 per cent, in stages, by 2022.

By comparison, supermarkets pay zero VAT on food and are able to use that saving to sell alcohol to customers at a discounted price.

Pub VAT went down to five per cent in July 2020 but will rise to 12.5 per cent next month. It is to return to normal by 2022.