Call to Scrap 'Taxi Tax' on Journeys: Taxi Drivers Demand Action from Chancellor

Taxi Industry Demands End to 20% Levy on Fares

Taxi drivers have reached out to Chancellor Jeremy Hunt ahead of the Budget, urging him to initiate the process of eliminating the controversial 'Taxi Tax'. Over a hundred industry leaders are advocating for the intervention to prevent a 20% tax from being imposed on journeys.

Uncertain Future for Taxi and Private Hire Sector

Highlighting their operations in economically challenged regions of England and Wales, the taxi and private hire firms argue that the tax will disproportionately impact communities dependent on their services. The sector warns of an uncertain future if no action is taken during this week's financial statement.

Push for Consultation and Scrapping of Levy

Following a recent High Court ruling subjecting taxi firms to VAT on full fares, the industry is now pressing for the cancellation of the levy. The group of 130 signatories is urging the Chancellor to launch a consultation on the matter with the aim of abolishing the tax.

Concerns Over Economic Impact

The signatories emphasize that imposing a 20% VAT on fares during the current cost of living crisis is ill-timed and detrimental. They argue that such a tax would limit transport choices for consumers, consequently affecting local businesses and hospitality during economic uncertainty.

Industry and MPs Urge Swift Action

Expressing concerns over the prolonged delay in finding a resolution, both industry representatives and Members of Parliament are calling on the Chancellor to address the issue promptly to safeguard the livelihoods of taxi drivers. The potential levy poses a new challenge to the already struggling hospitality sector, dependent on millions of cab journeys annually.

Upcoming Budget Decision

As the Budget approaches this Wednesday, the fate of the 'Taxi Tax' remains uncertain, with industry leaders and officials eagerly awaiting Chancellor Hunt's response to their plea for intervention.