Minicab passengers ‘face paying extra £4million a day’ unless taxi tax is scrapped by Chancellor
CAB passengers will be charged an extra £4million every day unless the Chancellor scraps his taxi tax, critics have warned.
They want Jeremy Hunt to axe the proposed 20 per cent hike in fares.
In November, he pledged a consultation over the VAT levy.
But nothing has happened since and campaigners have called for a resolution before this year’s general election.
A High Court ruling last year involving ride-hailing app Uber exposed private hire taxi firms to 20 per cent VAT on full fares.
The industry warns that could mean passengers being stung for an extra £4million a day.
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Campaigners say jobs are at risk and pubs, clubs, restaurants and theatres will all lose money.
They also point to safety issues with vulnerable people not taking taxis home if they are too costly.
Former Tory minister Paul Scully said yesterday: “We should not be going into a general election campaign with the taxi tax still hanging over the heads of people and business.
"It would be a huge political own goal.
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“The Chancellor should commit to resolving the taxi tax before a general election and not allow it to drift — the costs of inaction are very serious for vulnerable people, jobs and local economies across Britain.”
A spokesman from the Stop the Taxi Tax campaign said: “While the Chancellor’s commitment to launch the consultation was welcome, we’re still no further and this unfair and unwanted hike is still on the table.
“The delay has only increased concerns over the impact this tax will have on passengers and drivers — we need action ahead of the election.”