Pubs make VAT cut on pints

Bars across the country have started cutting the price of a pint. Publicans say they are passing on the 1% reduction in VAT onto drinkers.

When the Minister for Finance Charlie McCreevy announced the 1% cut in VAT in the budget last month, he warned retailers that he would be monitoring to ensure they are passing the cut onto customers and not lining their pockets. Now, the two bodies representing the nation’s publicans have come out to say their members are passing on the benefit for drinkers. Pub goers should notice drop of about 2p in the price of a pint if the publican has made the reduction. Chain stores too are reporting that they have dropped the price of thousands of items. It is also hoped that the reduction of the VAT rate from 21% to 20% will also help control inflation, which before Christmas almost destabilised the national pay deal.