JD Wetherspoon says pub tax is killing industry

JD
Wetherspoon has hit out at the government’s pub tax regime for
placing a ‘considerable burden’ upon many pubs.

Releasing its interim figures, the pub chain complained that the government
‘does not seem to understand’ the impact of new taxes and legislation which
imposes huge burdens on the industry.

‘Opportunistic ‘tax grabs’ and employee legislation to ’curry favour’ with
voters which businesses cannot afford will prove to be counter productive for
the government,’ said chairman Tim Martin.

‘Even the closure of one small pub results in a far greater loss of revenue
to the government than it does to the publican or pub owner. Costs of taxes and
regulations have gone too far and Britain has now become a highly taxed economy,
with high and increasing employment costs, which will have predictable and
inevitable effects on employment levels and tax income in the near and medium
term.’

It showed a 2% rise in profits for the six months to 25 January 2009 of
£30.8m (before exceptional items). Taxes generated by the group totaled £190m.

On an annualised basis, this equates to the group making £50,000 after-tax
profit per pub, while generating tax of about £530,000 per pub, added Martin.

Increased excise duty and new legislation relating to holiday entitlements
will cost the group an extra £19m for the financial year.

Further reading:

Non-doms dissatisfied with changes
to tax regime