British Government VAT Reduction from 20% to 5% for restaurants for half a year, 7:26 on July 9
In order to support restaurants and hotels that have been hit hard by the new coronavirus, the British government will reduce the VAT rate, which is the consumption tax of Japan, from 20% to 5% in order to support them. Announced. In Europe, Germany has already begun to reduce VAT rates.
This was made clear by the British finance minister Snack on the 8th in a parliamentary speech.
As a result, the tax rate of VAT, which is the consumption tax in Japan, will be reduced for the half year from 15th of this month to 12th of January next year.
VAT is applicable to restaurants, pubs, hotels, movie theaters and theme parks, and the tax rate is 5%, which is significantly lower than the current 20%.
Most of the restaurants in the UK were able to reopen on the 4th of this month, but many employees are still unable to return to work.
Snack said Finance Ministers needed to boost consumption, saying, "The food and tourism industry has been hit by the most people and suffered the most, and this would protect employment. Let's emphasize that the ripple effect is great not only in urban areas but also in local economies.
In Europe, Germany has already begun to lower the VAT rate since 1st of this month, and attention is being paid to the extent to which it will lead to a recovery in the economy.