Last checked at 
* Says trading since May 17 better than expectations
* Uplift in sales since restrictions lifted last week
* CEO says VAT reduction should be permanent
(Adds detail, shares, industry background)
By Yadarisa Shabong
July 28 (Reuters) - Pub operator Marston's on
Wednesday joined industry peers in calling on Britain to make a
coronavirus tax relief permanent, as the hospitality sector
looks to bounce back from the pandemic.
Britain last July cut value-added tax (VAT) for cafes,
restaurants and hotels to 5% from 20% as a temporary measure.
The government is planning to introduce an interim rate of 12.5%
for six months from October before reverting to 20%.
"The tone of Government messaging will be an important
influence on consumer confidence," Marston's Chief Executive
Ralph Findlay said in a statement.
"We believe that a Government review of the business rates
system is long overdue and that VAT reduction should be
permanent since the hospitality industry remains one of the most
heavily taxed sectors," said Findlay, who is due to step down
later this year after two decades in the role.
Findlay said the short-term outlook was uncertain and
"operationally disrupted", and a permanent tax cut would go a
long way in boosting employment across the industry.
Over the past year, pubs across Britain have laid off
thousands of workers, while labour shortages are a concern as
economies reopen.
Marston's peer J D Wetherspoon also criticised tax
rates on the sector, and warned a 12.5% VAT rate would increase
its food prices by around 40 pence per meal. The British Beer
and Pub Association also backs lower VAT on food in pubs.
Marston's, in a trading update, said its performance since
May had exceeded its expectations, thanks to the Euros soccer
tournament, warmer weather and outdoor seating. Its shares were
3.7% higher by 0725 GMT.
An easing of lockdown restrictions helped drive earnings and
positive cash flow in May and June, and sales have risen after
most restrictions were eased last week, the company said.
(Reporting by Yadarisa Shabong in Bengaluru Editing by Vinay
Dwivedi and Mark Potter)
