Britain’s Chancellor of the Exchequer, Rishi Sunak, announced that the VAT rates would cut for tourism and hospitality sectors to help them recover quickly from the COVID pandemic. Here is the full list of businesses which would be rebated:-
- Cafes, pubs & Restaurants
- Hotels, inns, boarding houses and other similar businesses
- Holiday and caravan parks
- Holiday accommodation businesses charging for tent or camping facilities
- Amusement parks
- Cultural events and facilities
VAT Rates Slashed Up To 20%
Alcohol items are excluded from the above list. However, any food item or non-alcoholic drink would take the benefit from hotels, pubs, and cafes, including dines and takeaways.
The move will also help these businesses bounce back and reduce their prices to attract customers. The Treasury expects that the consumers would be able to save around 160 euros per year.
In total, the measures would help around 1.5 lakh businesses to protect the job of 2.4 million workers. The tourism and hospitality sector would also be able to save approximately $4 billion.