Reduce VAT on Food & Drink in cafe's etc. to 10% & lower the threshold to £40K
Across Europe there are 14 member countries that charge VAT at 10% or less on food and drink served in pubs, cafes, restaurants etc. Some small businesses falsely declare lower turnovers to ensure they do not come into the VAT scope. Café A pays 20% VAT being honest, Café B pays 0 and avoid VAT.
If the VAT is reduced to 10% this would have a positive effect on the economy and tourism. By lowering the threshold on the same you bring more businesses into scope which would benefit the treasury for the lost VAT income and reduce fraudulent under declaring of turnover closing a tax avoidance loophole. It would also mean that there was a level playing field for businesses to compete and encourage growth. The general public would receive better value and comparison if all on the same tax
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