HOLIDAYMAKERS face higher prices because of the hated “Taxi Tax”, industry has warned.
The government’s proposed levy would slap 20 per cent VAT on private hire and minicab journeys.
The government’s proposed levy would slap 20 per cent VAT on private hire and minicab journeys.[/caption]
It threatens to hammer holidaymakers chasing late summer sun or planning a Christmas escape, as rides to and from stations and airports are among the most common uses of minicabs.
For many families, they’re a cheaper option than stumping up for pricey long-stay parking or sky-high ‘kiss and fly’ drop-off charges.
The average cost of the cheapest parking at one of the UK’s five busiest airports last month was still at least £113 a week, even when booked ahead.
Those airports – Heathrow, Gatwick, Luton, Stansted and Manchester — are the most visited in Britain, according to ride-hailing app Bolt.
Polling for the Stop the Taxi Tax campaign found 36 per cent of people typically use minicabs for station or airport travel.
Of Uber’s top ten destinations, eight are stations and two are airports.
Campaigners are urging the Chancellor to scrap the “Taxi Tax” before her autumn Budget.
If not, they warn, it will land as a stealth tax on Brits heading away.
Michael Solomon Williams, Head of Campaigns at Campaign for Better Transport, said: “Taxis and private hire vehicles are an important part of an integrated transport mix, especially for people who can’t drive, live in rural areas, or need accessible door-to-door travel.
“Often, they are the service for people to make that last-mile journey to reach a train or bus.
“The focus should be on making public transport more affordable and accessible – not taxing the services that fill its gaps, hiking prices and undermining connectivity.”
A hefty 71 per cent of Brits oppose the Taxi Tax, while 67 per cent agree it’s effectively a tax on working people.
A spokesperson for the Stop the Taxi Tax campaign said: “For many families heading off on holiday, minicabs are often the best and cheapest way to get to the train station or airport.
“The Chancellor should stick to her manifesto promise not to raise VAT on working people, and stop the Taxi Tax.”
