Two Wetherspoon pubs in Derby city centre cut prices on all food and drink for Tax Equality Day
The move has been taken by the pub chain to urge reduction of VAT
Two Wetherspoon pubs in Derby will reduce the cost of everything on their menu by 7.5 per cent.
City centre pubs The Babington Arms and The Standing Order will offer cut price food and drink on Thursday September 14.
Diners will pay cheaper prices on a range of dishes including American burgers, Katsu curries, pizzas, salads, pasta, brownies, cookie dough sandwiches and drinks.
The beleaguered pub chain is taking a stand to protest against ‘VAT disparity’ and is calling for tax reduction in the hospitality sector.
Supermarket chains don’t pay VAT on food and drink, in comparison to 20 per cent that pubs pay.
As a result of supermarkets paying zero VAT on food and drink, they can use money saved, to offer consumers alcohol at a lower price.
What is Tax Equality Day?
Organised by the hospitality industry, Tax Equality Day has been set up to protest against ‘unfair pricing advantages’ enjoyed by supermarkets.
As reported by The Caterer, Tim Martin, founder and chairman of Wetherspoon’s, said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.
“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%.
“This tax benefit allows supermarkets to subsidise the selling price of beer.
“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets.
“It doesn’t make sense for the hospitality industry to subsidise supermarkets.
“Customers coming to Wetherspoon’s pubs on Thursday 14 September will find the price of their food and drinks to be lower than normal.
“We urge the chancellor to create tax equality between pubs and supermarkets."