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MP Jonathan Gullis appeals to Chancellor Jeremy Hunt to shield PHV industry from 20% tax hike

In a bold move, Jonathan Gullis MP has reached out to Chancellor Jeremy Hunt with a compelling open letter, advocating for the protection of the Private Hire Vehicle (PHV) industry against impending tax increases.

Standing firm on the principles of sound economics and the support of small and medium-sized enterprises—described as the "backbone" of the nation's economy—Gullis's plea comes at a critical time.

The letter outlines the severe challenges faced by the economy, accentuated by the pandemic and geopolitical tensions, including Russia's conflict in Ukraine, which have left businesses across the UK striving for stability amidst a cost of living crisis. Gullis emphasises that the proposed imposition of a 20% VAT on PHV journeys, as dictated by a recent court ruling under existing HMRC regulations, would disproportionately affect those least able to bear the financial burden.

Highlighting the reliance on taxi and private hire services among vulnerable demographics, including children, the elderly, and those with mobility issues, as well as the 16 million people who utilise private hire vehicles for visits to hospitality venues, Gullis calls for immediate action. The impact of such a tax hike could devastate not only the taxi industry but also the hospitality sector, which is already grappling with the aftermath of challenging years.

Urging the Chancellor to expedite the publication of the promised consultation before the Spring Budget, Gullis's letter seeks to galvanise a swift review process that acknowledges the potential adverse effects of increased taxation on constituents.

Jonathan Gullis MP wrote an open letter to the Chancellor of the Exchequer Jeremy Hunt MP, saying: “We are writing to you to urge you to protect the taxi industry from yet another tax that will damage those who can afford it least.

“You have committed to a consultation which we are yet to see following the recent court ruling that HMRC will be obliged under current rules to effectively impose a 20% VAT levy on the public for private hire/taxi journeys - a significant rise from the current status quo.

“Many in our constituencies rely on taxis - this includes vulnerable children, elderly people who can't afford to keep a car, and those with mobility issues. Not to mention the 16 million people who took a private hire vehicle to visit a hospitality venue (another sector that is on its knees after several difficult years).

“We are calling on the Treasury to publish the planned consultation as soon as possible to ensure a solution can be found by the Spring Budget. We urge you to move ahead with a single, expedited consultation as soon as possible that takes into account the hugely detrimental impact a tax rise could have on our constituents.

“A recent poll by YouGov showed that more than 70 percent of the British public oppose the measure.

“This is not the time to kick the can down the road. Stopping the Taxi Tax is a chance for the government to show it is sensitive to the pressures on consumers and businesses, protecting jobs and livelihoods, whilst also ensuring passenger safety.”


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