SLAPPING a Taxi Tax on minicabs could see FIVE MILLION fewer trips to restaurants, bars and pubs every year, industry experts warn.
Plans to force VAT on journeys risks a fresh blow to the already struggling hospitality trade, who rely on 15 million cab journeys a year.
Fares would rise by a fifth if taxi tax not blocked[/caption]
But campaigners say new polling from YouGov shows that could slump by a third if fares are increased by 20 per cent.
The prospect of a the fare rise follows a High Court ruling which could see private hire companies having to charge VAT that would likely be passed
Chancellor Jeremy Hunt is under mounting pressure to block the move.
Ex-minister Jonathan Gullis told The Sun: “It makes no sense to burden people and businesses with a needless new tax, especially in an election year.
The Stoke-on-Trent MP added: “The impact on pubs, bars and restaurants – who are already struggling with inflationary pressures – and communities across the country will be very serious indeed.
“As a party, we are shooting ourselves in the foot by talking about lowering taxes at the Budget while raising them in other areas.
“The taxi tax is deeply un-Conservative and I urge the Prime Minister and Chancellor to intervene urgently to back businesses in cities like Stoke-on-Trent.”
And the British Beer and Pubs Association added: Pubs are already under strain and the Taxi Tax will increase travel costs to the point that many will choose not to go out at all – directly impacting establishments across the country.
Last night the Stop the Taxi Tax campaign, said: “Brits love their locals and our industry plays a key role in safely getting punters to and from home during a night out.
“The Taxi Tax will make this unaffordable for many, hurting an industry already struggling with millions fewer trips to the pub every year.”
They cited YouGov polling that showed an overwhelming majority of the British public oppose the Taxi Tax.
Almost 7 in 10 British adults polled by YouGov are against a VAT hike to 20 per cent with more than one in four adults “angry” at the move.
