‘A half-baked thought from the London-centric Treasury’: Readers weigh in on ‘taxi tax’ Funds row

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Your help makes all of the distinction. Learn extra Unbiased readers have reacted with anger to Rachel Reeves’ proposal to impose VAT on taxi fares, warning it might unfairly penalise rural residents, older individuals and people with disabilities who depend on cabs for important journeys.

Many highlighted the excessive value of taxis within the countryside, the place public transport is scarce or non-existent, and dubbed the coverage as “London-centric”.

Readers mentioned that hospital journeys, grocery store runs and faculty transport already stretch family budgets, and that including 20 per cent would scale back mobility, deepen isolation, and put further pressure on native councils.

In addition they pointed to the pressure on the NHS, which spends round £460m a 12 months on non-emergency affected person transport companies – a system that always contains the usage of taxis and personal rent autos to take individuals to medical appointments.

Others steered various sources of income, together with reforming council tax or focusing on luxurious companies comparable to personal healthcare, moderately than taxing those that use taxis out of necessity.

Whereas a handful of readers argued that taxis are sometimes a luxurious and must be taxed like different companies, the overwhelming response condemned the concept as regressive, short-sighted and a betrayal of weak communities.

Right here’s what you needed to say:

The aged who can't drive will probably be penalised

In Cornwall, the place I stay, the taxi fare every approach to the closest hospital is round £100, generally £120. That's every means. Principally the individuals who use these taxis are previous women or males who can't drive, however should go to hospital and aren't in a position to reclaim cash as a result of they aren't on pension credit or another profit. There are many these individuals, primarily widows who got here to Cornwall after which misplaced their husband, however have simply sufficient cash to be above the edge for advantages.

Baritonb2

They use taxis as a result of they should

Do not do it. I do know tons of people that use taxis as a result of they should. In areas of poor public transport, and so they cannot afford a automotive, for grocery store buying, hospital/physician appointments, and so on. An additional 20% is a large hike, cab homeowners will lose earnings, and folks will lose mobility.

bloodwort

A catastrophe ready to occur

I stay in rural Herefordshire. No automotive, no help community for journeys. Two buses per week to the closest city, eight miles away. That service is at present beneath risk. A single taxi from or to there prices £30 now. A devoted bus gang retains the present service going by willpower alone, however the buses continuously break down. Fortunate to have even that.

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I met a chap from a unique space, the New Forest, who advised me they don't have any bus service in any respect. Issue within the age of rural dwellers, and the brand new stringent rules for drivers over 70, and you've got a full-on catastrophe ready to occur. Additionally possible improve in drink driving again from the pub. One other personal aim for the federal government.

OkTed

VAT ought to apply exterior London

I do not perceive why taxi fares exterior London haven't been topic to VAT. It is time for the areas to tug their weight moderately than simply spend, spend, spend the cash that's generated in London from Londoners and the work they do.

I can hear the howls already from those that desire a free journey.

rEUjoin

Tax luxurious companies

There's a big tax alternative which I believe we're lacking.

How do wealthy individuals spend their cash? They purchase specialist companies unavailable to most people – personal faculties, personal well being care, chauffeur-driven automobiles, yachts in membership moorings, stables for ponies – the checklist could be very giant.

Reeves has made a begin in eradicating VAT reduction from personal faculties, however she ought to go additional and tax them. She ought to make an inventory of all these 'luxurious' items and companies and put punitive taxes on them till they now not exist. For a begin, she might take away the VAT reduction on personal well being care – oh sure, personal drugs normally will get the identical VAT-free perk that personal schooling used to. Non-public well being turnover within the UK final 12 months was £12.4bn – 20 per cent of that will be £2.5bn per 12 months. Quickly fill the black gap…

Dodgy Geezer

Council tax

I solely have three issues to say:

Council tax Council tax Council tax The cap on council tax is absurd and a present to the very wealthy. We'd like extra bands on prime of the present ones in order that the very wealthy pay extra. Doing this is able to be easy, low-cost, and would don't have any hostile impression on the typical individual.

Palemale

Further stress on taxpayers

Other than including to NHS prices, a whole lot of taxis are supplied by native authorities to get children – particularly SEN children – to colleges in rural areas. That value will even put further stress on taxpayers.

SteveHill

Deal with the foundation of presidency borrowing

The federal government must cope with the true cause for the unsustainable degree of presidency borrowing, which is report authorities spending. And this implies chopping the areas which have seen excessive progress in recent times: previous age advantages, illness advantages, free well being care, and social care.

Mark

The sticks

Most individuals exterior London use taxis as a result of they don’t have a viable various for the journeys they want to make. Right here within the sticks, we don’t have a carefully built-in, all-encompassing transport system. Ms Reeves appears to need to unfairly punish individuals for being needy. The place have I heard that earlier than? Am I sensing a U-turn already?

Nomoneyinthebank

Gas responsibility

Gas responsibility rise is lengthy overdue. Enhance it and let those that drive for a dwelling or the companies they work for declare it as a enterprise expense on their tax return. Hike the highest earners tax as nicely.

BikingBoomer

Taxis are a luxurious for many

I see taxis the place I stay primarily used to take individuals to the airport to allow them to catch flights to their costly overseas holidays, or exit in town and never want to fret about having just a few bevvies.

I'm certain there are some individuals who would fall into the 'no various and impoverished' class, however disabled individuals get vouchers they will use on taxis, and lots of people might truly stroll a few miles with out killing themselves. Truly, do them the world of excellent.

Taxis are a luxurious for many customers, so it might make sense to cost VAT identical to personal motorists should pay on diesel and petrol, and charging EVs on public charging stations.

After all, the taxi enterprise can be a part of the black market in a whole lot of instances.

CanPeopleReallyBeThisStupid

London-centric

One other half-baked thought from the London-centric Treasury. My council makes use of taxis loads for varsity runs, so that is simply extra value. Why does she and the Treasury provide you with one thing that will probably be each acceptable and work? Strive closing some tax avoidance loopholes; that will be a superb begin.

ZZiggurat

Weak teams will endure

Penalising those that can’t or aren't allowed to drive by DVLA due to age or incapacity, those that can't afford a automotive, individuals in rural areas, the younger, and the weak having to stroll dwelling at evening… Is she secretly working for a right-wing social gathering and attempting to lose help?

Holly

A number of the feedback have been edited for this text for brevity and readability.

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