VAT

15 Jul

london 8.40pm 18C cloudy wednesday 2020

i haven’t bought anything today, so i dont know if the 5% vat that is now on is really reflected in prices lowering. simon had been to the sainsburys and i asked him if he noticed any price reductions, he said no. one thing though, supermarkets may not be a good example of Vat effects, as all fresh foods have no Vat anyway. and i read recently that supermarkets dont have to pay vat at all. in the past i have seen lidl adding info about how much you pay in vat on their receipts, but not recently, so maybe it is correct that supermarkets stopped paying vat.

the real reductions will be felt in the food and hospitality outlets, like cafes, and restaurants, so as i have read in the news today, kfc, nandos, pret, burgerking, macdonalds , will be reducing their prices. some have allready pointed out that all these are fast foods places, and will encourage obesity… you cant win them all, can you? there will always be people picking on things to criticise.

( if we are talking of complaints, there is also complaints about the half price discount that will apply in august. the expensive restaurants are criticising it, saying the £10 limit per person discount will not do much for their businesses, since 2 meals of £20 each, can get discounts of £10 each, whilst a single meal of £40 can only get £10 reduction. and even as i speak, allready two of these michelin starred restaurants have reported 20 or more failed no shows, in their bookings. they lose out a lot when that happens, people dont turn up when they have booked the tables). 

as in anything in life, some people win , some lose. that is life. it is never fair. hoho.

weatherspoons, the pub chain, will also reduce their prices and in fact goes one further, they will reduce their alcohol prices too, even though the VAT reduction does not apply to alcohol. so other pubs are quick to complain, because it would look like they are not reducing their prices and people will blame them for not following the VAT reduction when it is not covered by the Vat.

but really all this is small beer. the vat reduction is only till 12 jan 2021, and the half price discount is only for month of august, i wonder if it will really revive the economy.

that economy had been hit real hard, i think we all dont know how bad it is hit, until the figures come in , we shall not know the true extant, until  a year later. it will take that long  for us to get the real picture.

the whole world is going to be hit real hard. if the world can have a v shaped recovery, all may not be lost. but will we get this v shape ? and the virus is not over yet, so its effects are not over. 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: