Following the success of the 2013 'Tax Parity Day', we decided to take part in the 2014 Tax Equality Day and will cut our prices by 7.5% across all bars on Wednesday, the 24th of September.
The initiative comes from the VAT Club Jacques Borel. Jacques Borel has a history of campaigning for lower tax rates across Europe, with success in Germany, Belgium and Finland to name a few countries.
His premise is simple. Why should bars and restaurants pay 20% VAT on food and drinks whilst supermarkets pay 0% on food?
By having a tax-free rate, food supermarkets are able to sell at disproportionately lower prices than bars and restaurants, which leads to fewer people eating out and supporting those businesses and the jobs created there.
Several economic studies show that a lower VAT rate would translate to a 10% increase in customers, which would then lead to additional staff being hired. The additional staff and customers would lead to the government recouping most of the VAT reduction via the income tax from new jobs created, increased sales and higher corporation tax receipts.
In conclusion, a lower VAT would mean lower prices and more customers through the door. More customers would then require more staff, which means new jobs would be created and more money would be available for wages, training and improving sites whilst keeping the trade fair between supermarkets, pubs and restaurants.
Over 15,000 outlets are expected to take part in this day, cutting their prices by 7.5%. Join us on Wednesday, 24th of September and help us create better conditions for both the industry and you.