The proposed 20 percent taxi tax has sparked anger among Tory voters who are demanding that ministers reconsider this levy. According to a recent poll, a staggering 68 percent of Tory voters deem this tax unfair.
Unfair and Unpopular
The introduction of VAT on private hire taxi and minicab fares could potentially increase the transportation costs for the average user by £200 per year. Unsurprisingly, almost two-thirds of those who supported the Tories in the previous election would view any party imposing this tax in a negative light.
Disproportionate Impact
The burden of this tax is expected to hit individuals from low-income households and those with mobility challenges the hardest. Nearly eight in ten of these households express concerns about their ability to afford these additional costs.
Mounting Pressure
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are facing mounting pressure to reconsider the introduction of this tax in the upcoming March budget. Both the British Beer and Pub Association and the Federation of Small Businesses have warned about the potential threat to jobs and livelihoods that this tax carries.
Legal Implications
Following a legal battle with Uber, the Treasury has agreed to consult on the tax. This means that taxi companies will be responsible for charging VAT on fares. However, voices of dissent from within the Conservative party have emerged.
Former minister Paul Scully argues against introducing this tax, stating that the tax burden is already at a 70-year high, and there is no need for an additional tax. Ben Bradley, another Tory MP, echoes these sentiments, deeming the taxi tax un-Conservative and ill-timed for individuals already grappling with high living costs.
Image Source: Alamy
Pet Lovers Diary urges the government to listen to the concerns of the voters and reconsider the implementation of the controversial taxi tax. Let’s hope that our elected officials prioritize the welfare and affordability of transportation for all.