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<p>VAT is a broad-based tax on consumption and the 20 per cent standard rate applies
to most goods and services, including alcohol sold at both pubs and supermarkets.
Exceptions to the standard rate have always been limited by both legal and fiscal
considerations.</p><p> </p><p>The Government understands the vital role the hospitality
industry plays in the UK economy. We have implemented a new alcohol duty system on
1 August, which also has many benefits for pubs. The new Draught Relief provides a
significant duty discount on alcohol sold in containers of 20 litres or more, in pubs
and other on-trade venues. As well as this, the Government’s ‘Brexit Pubs Guarantee,’
confirms that the duty on a draught pint will always be lower than its equivalent
in a supermarket.</p><p> </p><p>The Government continues to keep all taxes under review.</p>
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