Jeremy Hunt under pressure to axe ‘taxi tax’ that risks fares rising by huge amount

JEREMY Hunt is under growing pressure to axe a ‘taxi tax’ that risks fares rising by 20 per cent.

Millions of people who depend on minicabs face higher costs with campaigners demanding the Chancellor act at the Autumn Statement this month.

Polling shows 75 per cent of retired people and 71 per cent of low-income households are most strongly opposed to the travel costs hike.

One in four Brits regard themselves as “angry” at the move after the High Court ruled private hire operators  could be liable for putting VAT on fares.

Overall, a  staggering  seven in ten British adults oppose the tax rise when ‘don’t knows’ are excluded, polling for YouGov finds.

Those who book transport for hospital visits, NHS staff working late shifts who can’t use public transport  and the night time sector will also be affected.

A High Court judgement following a legal battle with Uber now means taxi firms are responsible for charging  VAT on the fares.

The Treasury are now facing calls from the Stop the Taxi Tax campaign who say the rise is unfair tax amid the cost of living crisis.

Discussions between the sector and Whitehall have taken place with calls to change the law to make sure the taxi operators aren’t hit.

Driver Darren Starkey,  a spokesperson for Stop the Taxi Tax campaign, said:  “This taxi tax is unfair and harmful to millions of people across the country who regularly rely on minicabs to get around.”

Michael Kill, chief executive officer of the Night Time Industries Association,  said:  “Increased fares due to the VAT hike on every journey, as well as the current surge in inflationary pressures, will render these safety measures financially burdensome for too many.”

A spokesperson for Bath University Student Union said:  “Whether it’s working a part-time job somewhere with late opening hours, or even going for a night out with friends, it’s so important students and young people can get home safely, quickly and conveniently, and the ‘taxi tax’ will jeopardise that.”

A Treasury  spokesperson said: “This High Court ruling does not change the tax position, it remains the case that fares are liable to VAT at the standard rate, however we are considering carefully the implications of the ruling and the challenges it raises.”

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