The VAT increase which came into force today will lead to the typical cost of a pint of beer in a pub breaking through the £3 barrier for the first time, said The British Beer & Pub Association
The increase in VAT to 20 per cent would add a further 6p to the cost of a pint of beer, on top of the 26 per cent rise in beer tax seen during the past two years.
It warned that the "double whammy" of the increase to duty and VAT was placing "shackles" on the pub and hospitality sector, and it urged the Government to abandon plans for further beer tax increases.
The warning comes as nervous retailers promise to absorb or delay today's 2.5 per cent VAT hike but admit they can only defer higher prices for so long.
The BBPA said the tax increase would hit pubs, in which beer is the key seller, more than other retailers, as many are small, family-run businesses, which are less able to absorb the cost than big supermarkets.
Research carried out for the group by Oxford Economics suggests that the VAT increase will lead to the loss of around 8,800 jobs related to the sale of beer.
No comments:
Post a Comment