A health expert has argued VAT on alcohol sold in pubs should be cut to help the trade and tackle alcohol misuse in the UK.
Dr Nick Sheron, a co-founder of the Alcohol Health Alliance, said if VAT for pub drink sales was reduced to 12 per cent it would mean duty could be raised and not affect the price of a pint.
Writing in this week's British Medical Journal, Sheron states: "Pubs are expensive to run and have to charge more for alcohol. As a result they pay more VAT, which puts the price up the price of a drink even further."
He highlighted that a higher VAT rate is charged to drink coffee on a premises, than to take it away.
"If this policy was applied to alcohol but was reversed…it would be possible to increase the rate of duty to compensate for this without increasing the price of alcohol in pubs," he wrote.
Pub industry figures welcomed the proposal.
Jonathan Mail, CAMRA's head of policy and public affairs, said he was "encouraged" the health community was "increasingly recognising that well-run pubs are part of the solution to alcohol misuse not part of the problem."
He added: "CAMRA are very supportive of this particular proposal and it is an idea we have previously campaigned to get the Treasury to consider. Following a recent change to EU law it is possible for the Treasury to reduce VAT on pub meals and drinks."
Brigid Simmonds, chief executive of the British Beer & Pub Association, stressed that raising beer duty "certianly isn't the answer", but said she would welcome a "really close look" at reducing the VAT bill for pubs.
"Nearly all of our neighbours already do this," she said. "In France, they introduced a reduced rate of VAT in January 2009, for restaurant food and hotel accommodation. This has created 29,500 jobs in the first year alone - making the hospitality sector in France a key driver of jobs.
"Cutting VAT can protect and create jobs in pubs, bars and restaurants, thus boosting tax revenues. Reversing the trend towards drinking at home would be a positive step."
VAT is due to be increased by 2.5 per cent to 20 per cent on January 4, which will force many pubs to raise their prices.