Rahel reeves Is Facing a backlash on plans To impose Tub On rent of a taxi, allegations with warnings with critics will kill rural residents and make more expensive for people with disabilities to participate in medical appointments.
Campares have warned Chancellor He Traveling hiking on cab travel The cost of trips outside London will increase, which kills people living in rural areas the most difficult.
And he has shown that NHS spends £ 460m a year on private rented vehicles and taxi travels. VAT on the rent of the cab There will be pressure on the budget of stressful healthcare already.
Taxi companies outside London currently do not have to charge VAT on travel, in which drivers are considered self-employed contractors. And individuals do not meet the threshold of £ 90,000 per year in earnings, on which they will be responsible for paying VAT.
But the government has started a consultation to standardize the system by charging the full rate of VAT on all taxi trips.
Beyond the budget of autumn, in which Ms. Reeves Needs to find tens of billions of pounds in tax hike To balance the books, the taxi industry fears that it will hit the VAT charge.
Shocking Minister Dan Tomlinson said this month that the government “takes this complex issue very seriously and recognizes the need for businesses for certainty”.
He said, “The government is carefully considering a wide range of ideas shared through the consultation of last year on the VAT treatment of private rental vehicles and will soon publish a detailed response,” he said.
A decision is expected when Ms. Reeves set her tax plans on 26 November.
Talk to WireMichael Solomon Williams, Campaign for Better Transport, said: “Taxi and private rental vehicles are an important part of an integrated transport mixture, especially for those who live in rural areas, may not require driving or accessible door-to-door travel.
“Focus should be on making public transport more affordable and accessible – not tax on services that pay its gaps, reduce hiking and connectivity in prices.”
Meanwhile, the taxi tax campaign warned that the step would be a violation of the promise of the labor manifesto to not increase VAT.
“Not only that, it will make people living in rural communities especially difficult, which lack reliable and accessible public transport,” said a spokesman.
A spokesperson of the Treasury said: “We take the issue very seriously and recognize its complexity. We are reviewing the response in our recent consultation and will soon publish our detailed response.”