Why the cost of YOUR Uber is going up: Labour's 'taxi tax' could send fares soaring with 20% VAT hike

The UK Labour party is considering imposing a 20% VAT on private hire vehicle journeys, which could increase the cost of services like Uber by over 15%. This potential "taxi tax" has drawn criticism from ride-hailing companies and safety advocacy groups. Ride-hailing bosses from Uber, Bolt, and Veezu have jointly urged the Chancellor to reconsider the tax, arguing it would disproportionately affect vulnerable passengers who rely on these services for essential transportation. They warn that fare increases would isolate the elderly, people with mobility issues, and could lead women to take greater safety risks. Women's groups, such as The Survivors Trust, have echoed these concerns, highlighting that taxis are crucial for safe travel, particularly at night, for women and frontline workers. They advocate for prioritizing safety and accessibility in transportation policy. Currently, private hire vehicle drivers are generally not VAT registered as they don't meet the £90,000 earnings threshold, meaning their journeys are not subject to VAT. Booking apps, however, often exceed this threshold. If the VAT is applied, ride-hailing companies state that potentially vulnerable customers... download the app to read more