JDW tax drop provides significant sales boost
JDW chairman Tim Martin hailed the day on 20 September as an outstanding success in terms of sales and in raising awareness of the impact VAT has on the hospitality industry.
Martin said: “Our like-for-like volumes (excluding new pubs) were up by 17% against the same day last year.
“Apart from the fantastic sales increase on the day, the overriding benefit was to get the important tax equality message over to the general public, which we achieved in our pubs and across the media.”
Association of Licensed Multiple Retailers chief executive Kate Nicholls praised the opportunity Tax Equality Day can brings to pubs.
Great opportunity
She said: “It is a great opportunity for venues to communicate the issues of VAT to their customers. People working within the eating and drinking out sector understand the cost burdens being placed on venues and the massive disparity compared to other sectors that do not have to pay tax.
“A one-day drop in prices can be a great way to show the scale of the problem to customers and to get the message to the Government – a lower rate of VAT for eating and drinking-out venues means more opportunity to invest in jobs and growth.
British Beer & Pub Association chief executive Brigid Simmonds also backed the campaign. She said: “Tax equality day is a great opportunity to shine a light on how unfair VAT is for both pubs and the wider hospitality sector.
“If you buy a meal in a supermarket, you pay no VAT, but in the pub you pay 20%. Even a small drop in the VAT rate for eating out, to 15%, would create 78,000 jobs, and would be a big boost for the economy. I hope pubs will get behind the campaign.”
The Government should address the current imbalance between the taxes paid by pubs and other social drinking establishments and that paid by supermarkets and off-licences, according to the Campaign for Real Ale.
Tax burden
Chief executive Tim Page called on the Government to reduce the tax burden on pubs ahead of the November Budget.
He said: “Taxes now make up more than one third of a cost of a pint. This is frankly unsustainable and it is the consumer who will ultimately pay the price. Whether it is when their beloved local closes down or when the cost of their pint goes up.
“Pubs need our support because they are more than just a business. They play a vital role in the lives of individuals, whose wellbeing is increased by the friends they make and meet, and the range of contacts they develop.”
Page also outlined how pubs are the cornerstones of their local communities, bringing people together as well as creating local jobs and investment.
He added: “Pubs have traditionally played a key role in our society as a whole, breaking down barriers and helping to define British culture.
“We are, therefore, calling on the Government to reduce the tax burden on pubs ahead of the November Budget. We urge beer lovers across the country to get involved by contacting their MP today about this important issue.”
