Yahoo Finance Thousands Of Pubs And Restaurants Cut Prices
Thousands of pubs and restaurants across the UK are lowering their food and drink prices - for one day only.
Up to 40 leading businesses are involved in the stunt, including the pub chain JD Wetherspoon (LSE: JDW.L - news) and Pizza Hut, with up to 15,000 outlets in total said to be taking part by trimming their prices by 7.5%.
The move is part of a Europe-wide campaign - led by French businessman and lobbyist Jacques Borel - to persuade governments to reduce levels of VAT on food and drink in the hospitality sector.
In the UK, that would involve cutting VAT from 20% to 5% to give it tax parity with supermarkets.
The industry suggests that the taxman is missing out, arguing that more could be raised in tax from making meals out more competitive at a time of constrained family budgets.
The hospitality sector says tax parity would mean higher employment - helping arrest the decline in pubs and restaurants and prompting further investment to assist economic recovery.
Mr Borel estimates that 670,000 jobs could be created in the UK by reducing the 20% VAT burden to 5%.
The issue has long been championed by JD Wetherspoon chairman, Tim Martin, who warned earlier this month that the pub industry faced an uncertain future.
He told Sky News then: "I am pleased to report another year of progress, with record sales, profit and earnings per share, despite having paid £551.5m in taxes.
"It is unsustainable to have far higher taxes for the pub industry than those for supermarkets.
"Already, 10,000 pubs have closed and many others are suffering, through insufficient investment.
"In particular, there should be VAT equality for pubs, restaurants and supermarkets," he said.
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