The reduction in VAT on hospitality costs cannot be passed on to British consumers | Business

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Buyers and tourists expecting prices to drop on Wednesday following the Chancellor’s decision to cut VAT on hospitality may be disappointed as some organizations pocket the savings rather than pass them on to consumers.Last week, Rishi Sunak announced that the tax, which is levied on most goods and services, would be reduced from 20% to 5% from July 15 to January 12, 2021 for entry into restaurants, cafes, hotels and attractions such as zoos and cinemas.

The Chancellor described the move as “a £ 4bn catalyst for the hospitality and tourism industries, benefiting more than 150,000 businesses and consumers worldwide”. Deloitte accountants said families had to save more than £ 5 on a £ 45 meal and even more at the entrance to attractions.

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