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Taxis: VAT

Asked by Mr Richard HoldenConservativeTreasuryTabled Answered 8 September 2025UIN 74446

The question

To ask the Chancellor of the Exchequer, with reference to her Department's consultation entitled Consultation on the VAT Treatment of Private Hire Vehicles, which closed on 8 August 2024, what assessment her Department has made of the potential impact of applying 20% VAT to private hire vehicle journeys on vulnerable users.

Answered by Dan Tomlinson

The Government continues to take this complex issue very seriously and recognises businesses’ need for certainty.

The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles and will publish a detailed response soon.

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