Another hospitality business has thrown its weight behind Caterer and Hotelkeeper‘s campaign to Slash VAT, Boost Business.
David Fox, co-founder of Asian-style casual dining chain Tampopo, said: "To have a cohesive campaign on this issue is really important. The increase (to 20% in Janaury 2011) is really meaningful for a business of our size.
"We are probably paying an extra £130,000 a year in VAT and that is on a turnover of £6.5m. That is a substantial amount. You can't just add 2.5% to your prices because the consumer is being pinched as well.
"You would have thought if there was any party that was minded to create more tax revenues by having a lower rate of tax it would be the current Government."
Only one country - Denmark - has a higher rate of VAT for hospitality businesses than the UK, at an eye-watering 25%. Last month, Ireland dropped its rates for all tourism-related goods and services, which includes hotels, restaurants and pubs from 13.5% to 9% until the end of 2013.
For more information on Caterer‘s Slash VAT campaign, go to www.caterersearch.com/slashVAT.
By Neil Gerrard
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