Celebrate the VAT Cut by Cutting your Prices
ITICA welcomes the Government decision to cut VAT by 4½% and recognises the significant contribution this will make in addressing some of the challenges we currently face.
ITICA appreciates that the decision to cut VAT is motivated by the desire to encourage increased spending and as such to incentivise employment in the services sector. The prevailing view is that the reduction in costs will persuade our customers to spend more. This will only work if we play our part and reduce our prices.
The ITICA committee is asking all its members to respond positively to this most welcome initiative. It would be all too easy for us to take advantage of this reduction in our cost base as a means of addressing falling margins. However this would be contrary to the spirit of the VAT cut and will do nothing to get our cash registers ringing again. We do believe that it is hugely important that hard pressed ITICA members pass on the savings onto our equally hard pressed customers. We believe that our customers will respond positively to price cuts.
While it is for every ITICA member to decide for themselves how they pass on the VAT reduction, and if you decide to do so, let your customers know.
Put posters in your shop window, include flyers in take out bags, ask your staff to let your valued customers know that you have cut your prices.
And remember, the Government have signalled that the VAT cut will be reviewed and will be reversed if it is found that it has not had the desired effect of bringing down prices, getting spending up and increasing employment.
We trust you will do everything you can to reduce your prices.
The ITICA Committee