So, for example, a customer spending £10 on food and drink will pay £9.25 on Tax Equality Day. By comparison, supermarkets pay zero VAT on food and are able to use that saving to sell alcohol to customers at a discounted price. Red Lion & Pineapple manager Alessandro Piano said: "Customers coming to the pub will find the price of their food and drink is lower than normal. “It’s unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent. "A VAT cut to 12.5 per cent is needed to ensure that pubs continue to thrive."