THE largest pub in Greenock is to cut the price of all food and non-alcoholic drink by 7.5 per cent for a day.
Prices will be slashed at The James Watt on Cathcart Street on Thursday September 14 to 'highlight the benefit of a permanent VAT reduction in the hospitality industry'.
While all food and drink in pubs is subject to 20 per cent VAT, supermarkets pay zero VAT on food.
Bar manager Neil Clark, said: "Customers coming to The James Watt on September 14 will find the price of their food and non-alcoholic drink is lower than normal.
"It is unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.
"The tax benefit allows supermarkets to subsidise the selling price of beer.
"It doesn't make sense for the hospitality industry to subsidise supermarkets.
"We urge the Chancellor to create tax equality between pubs and supermarkets."
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