“Why The Chancellor Must Axe a 20% Taxi Tax That Will Harm the Economy”
The proposed levy could see VAT added to all private hire and minicab fares, causing passengers to face steep price increases of more than £200 a year.
The Impact of the Proposed Taxi Tax
Opponents of the 20% taxi tax have written to Jeremy Hunt, urging him to launch a consultation before the Budget in March. Ex-Tory minister Paul Scully emphasized the need for decisive action, stating, “We need to see action, not further delay.”
Potential Consequences of the Taxi Tax
Campaigners are warning that the tax would negatively impact various sectors, including pubs, clubs, restaurants, and theaters, resulting in financial losses. Moreover, there are concerns about safety issues with vulnerable people being unable to afford taxi rides home if the fares become too costly.
The Call for Urgent Action
Gareth Cadwallader, from the Stop the Taxi Tax campaign, emphasized the potential detrimental effects of the proposed tax, stating, “This huge new tax will lead to higher prices on a safe trip home, impact jobs, and stifle economic growth. More dithering and delay will only create uncertainty and risk livelihoods.”
Government’s Response to the High Court Ruling
A Treasury spokesperson stated, “The High Court ruling does not change the tax position, it remains the case fares are liable to VAT at the standard rate.” However, with concerns raised by various stakeholders, it is essential for the government to address the potential negative impact of the proposed tax and explore alternative measures to ensure minimal disruption to the economy and the general public.