An Aberdare pub is to cut the price of all food and drink by 7.5 per cent on Thursday September 18
to highlight the benefit of a permanent VAT reduction in the hospitality industry.
Prices at Yr Ieuan Ap Iago in High Street will be reduced for one day only to mark Tax Equality Day in
the Wetherspoon pub.
So, for example, a customer spending £10 on food and drink will pay £9.25 on Tax Equality Day.
All food and drink in pubs is subject to 20 per cent VAT.
By comparison, supermarkets pay zero VAT on food, and are able to use that saving to sell alcohol to
its customers at a discounted price.
The pub’s manager, Charlene Grunewald, said: “Customers coming to Yr Ieuan Ap Iago on Thursday
September 18 will find the price of their food and drink is lower than normal.
“It’s unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.
“Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with
supermarkets.
“The tax benefit allows supermarkets to subsidise the selling price of beer.
“A VAT cut to 12.5 per cent is needed to ensure that pubs continue to thrive.
“We urge the Chancellor to create tax equality between pubs and supermarkets.”
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