Around 15000 pubs took part in the Tax Parity Day last Wednesday, a campaign (see previous blogs) to seek to have a reduction in VAT for pubs - thereby giving tax parity with supermarkets.
The 15000 pubs reduced their prices on the day so that the new price reflected what would happen if VAT was reduced to 5%, and what do you know? Sales went up!
Many operators recorded increased sales, with Amber Taverns up between 10% to 23%, St Austell up 10% and JDW boss Tim Martin reporting that "Tax Parity Day was an outstanding success with sales up approximately 20%". Many others reported similar success stories.
The theory remains the same; reduce VAT in pubs to give parity with supermarkets and sales will grow. This will create more jobs (700,000 more jobs created in countries that have so far bitten the bullet and reduced VAT) this in turn will increase tax revenue (each extra £3 pint sold in a pub produces £1 in tax and £1 in wages).
A long hard slog, but eventually...??
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
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