A POPULAR Dunfermline pub has announced its plans to cut their prices by almost 10 per cent next week.

The Guildhall and Linen Exchange Wetherspoons on the High Street will be discounting their food and non-alcoholic drinks by 7.5 per cent for one day only in an attempt to highlight their desire for tax equity between bars and supermarkets.

Currently, all food and drink that is sold in pubs are subject to a 20 per cent VAT. In supermarkets, however, there is no VAT paid on food which allows them to sell discounted alcohol.

"It is unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent," said Stephen Nesbitt, the Guildhall and Linen Exchange manager.

"Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets. It doesn't make sense for the hospitality industry to subsidise supermarkets."

On Thursday, September 15, Tax Equity Day, customers who spend money on food and drinks will get their order for a cheaper price. If someone buys £10 worth of food and beverages, for example, they will only pay £9.25 for their order.

Stephen continued: "Customers coming to The Guildhall and Linen Exchange on Thursday September 15 will find the price of their food and non-alcoholic drink is lower than normal.

"We urge the Chancellor to create tax equality between pubs and supermarkets."