A total of 15,000 venues have signed up to take part in Tax Equality Day, which is being organised by Jacques Borel’s VAT Club.
On the day, participating pubs and restaurants will cut their food and drink prices by 7.5 per cent to demonstrate the effect a VAT cut from 20 to 5 per cent would have on the cost of eating out.
Tax Equality Day
Tax Equality Day follows on from last year’s Tax Parity Day, which helped businesses boost sales by as much as 20 per cent.
Around 40 companies have signed up to take part, including Punch Taverns, J D Wetherspoon, TGI Friday, Daniel Thwaites, Wadworth & Co, TCG Pubs, Everards and Fuller’s.
This year will also see more independent venues and small companies, such as Anglian Country Inns, Snug Bars and Pub Love, cutting prices to support the VAT campaign.
“A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector,” said Borel.
“We are delighted with the response from the industry and expect many more companies and individuals to show their support for Tax Equality Day between now and the day itself.”
VAT cut
Currently, food and drink in pubs and restaurants is subject to 20 per cent VAT, while supermarkets enjoy a zero VAT rate.
UK tourism attractions and accommodation are also subject to 20 per cent VAT, despite the government having the option to cut the tax on tourism.
Campaigners argue that this puts the UK hospitality sector at a disadvantage, with implications for tourism, the economy and employment.
Earlier this summer, the Sun newspaper backed the industry cause with its 'Give Us a Break' campaign.
However, despite Parliamentary debates on the issue attracting cross-party support, the government has so far refused to reduce hospitality and tourism VAT, arguing that a cut would cost too much and create a revenue shortfall.