100 signatures reached
To: Jeremy Hunt, Chancellor of the Exchequer
Stop the Taxi Tax: Call on the Government to stop a 20% VAT hike on private hire & minicab journeys
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The Taxi Tax would be harmful and unfair to people across the country, including drivers, those who need private hire and minicabs for essential journeys, and businesses that rely on the taxi trade for custom.
We are calling on the Government to step in and stop this tax at the earliest possible opportunity. In the Autumn Statement the Treasury confirmed it would consult on the issue in ‘early 2024’.
There is no time to waste. The consultation must not be used to kick the issue into the long grass. Without urgent and decisive action further uncertainty and concern will be created for drivers, consumers and business in every constituency across the country. The Chancellor and Government must publish the consultation now to provide enough time for action to be taken in the Spring Statement in March.
Why is this important?
This would be a tax on people and businesses, threatening jobs and livelihoods, and impacting vulnerable people most of all. New research shows the British public are against the Taxi Tax, with 7 out of 10 opposed to 20% VAT being imposed on private hire and minicab journeys. This opposition was highest among low-income households (71%), women (71%), over 65s (75%) and those suffering from mobility impairments (74%) (Source: YouGov, 2 November 2023).
Low-income households and vulnerable groups are those who say they can least afford the new tax. Almost 8 in 10 low-income households who use private hire minicab services (78%) say they will find it hard to pay higher prices, alongside 68% of those users with mobility impairments. Government data shows that in 2021/22 VAT amounted to 12.4% of income for the lowest earners but only 4.7% of income for the top earners. As people struggle with the daily cost of living, putting VAT on minicab trips stands to negatively impact those on lower incomes disproportionately.
