Britain to slash VAT in service industries

Jul 09, 2020

Business
Britain to slash VAT in service industries

London (United Kingdom), July 9: Britain will slash its value-added tax in several service industries in a bid to stimulate consumer spending amid the coronavirus pandemic. The cut will affect restaurants and hotels, two of the hardest-hit industries.
The Chancellor of the Exchequer Rishi Sunak has told Parliament that the rate will come down to 5 percent from July 15 to January 12 next year from 20 percent. Customers at pubs, movie theaters and theme parks will also enjoy the lower rate.
Sunak noted that the restaurant and tourism industries employ more people than other sectors, and have seen the biggest drops in business. The finance minister stressed the importance of invigorating consumer spending. He added that the cut will help protect jobs and boost the economy, not only in big cities but rural areas as well.
Germany lowered its VAT rates on July 1.
Source: NHK World