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Tax Parity Day resulted in sales uplift

30 | 09 | 13

Companies that took part in Tax Parity Day are reporting a rise in sales during the period.

On September 25th, restaurants, pubs and other establishments taking part offered a reduction of up to 7.5 per cent on their prices to reflect how competitive the hospitality industry could be without high VAT.

The news may be of interest to the catering equipment industry, as it could bring more good announcements. Last Wednesday's results arguably show the success that could arise from a reduction in tax rates and, if this was to happen, an upturn in dining and catering could follow.

Organiser of the event Jacques Borel said: "Tax Parity Day was an outstanding success with companies taking part reporting that it was a wonderful way to reinforce our message that lower VAT in our sector will deliver lower prices and create hundreds of thousands of jobs."

Current VAT for the hospitality sector is at 20 per cent, compared to supermarkets and shops which do not pay the tax for food.

Many pub chains took part in the day, including JD Wetherspoons and all Fuller's pubs. Wetherspoons reported a 20 per cent increase in the number of drinks and food purchased on the day, while chief executive of Fuller's pubs Simon Emeny concluded "a reduction in the disparity in VAT levels between supermarkets and our sector would encourage new customers to socialise in pubs and restaurants".  

Amber Taverns reported a rise in sales volumes of between ten and 23 per cent, reporting a variance depending on the region. Its operations director Gary Roberts said sales were highest in the north-west due to televised football matches of northern teams. He argued this retained customers longer but the exercise did still manage to improve public knowledge - stating many were initially unaware supermarkets were not under the same VAT faced by the hospitality industry.

The manager of restaurant chain Pizza Hut Jens Hofma reported a positive reception from both staff and employers as all 330 businesses took part in Tax Parity Day.ADNFCR-16001031-ID-801643625-ADNFCR

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