Call to extend VAT exemption to taxis is a ‘matter for His Majesty's Treasury’ says Transport Minister
The call to extend VAT exemption to wheelchair accessible vehicle (WA) taxis is a ‘matter for His Majesty's Treasury’, says Transport Minister.
The potential expansion of VAT exemptions for taxis was raised in the form of a Parliamentary written question this week. Liberal Democrat Transport Spokesperson Paul Kohler questioned the Secretary of State for Transport whether there had been any recent discussions with the Chancellor regarding the issue.
The query highlighted the need to consider disabled accessibility within the taxi industry. Kohler’s question sought clarity on whether a VAT exemption, currently applicable to adapted vehicles for personal use, could be extended to wheelchair-accessible taxis.
Responding on behalf of the Department for Transport, Parliamentary Under-Secretary Simon Lightwood emphasised that VAT policy falls under the remit of His Majesty’s Treasury. He also noted that the Plug-in Taxi Grant, which offers up to £6,000 to promote ultra-low emission vehicles, includes a requirement for supported vehicles to be wheelchair accessible.
No indication was given on whether the Government intends to review VAT exemptions for taxis. However, the exchange raises questions about financial support for operators investing in accessible and sustainable fleets.
Further developments are anticipated as pressure grows for greater support to maintain the number of disabled-friendly and increase environmentally conscious transport solutions.
Lightwood MP said: “The VAT treatment of goods and services is a matter for His Majesty's Treasury. One of the requirements of the Plug-in Taxi Grant, which offers a discount of up to £6,000 to support the uptake of ULEV taxis, is that the vehicle should be wheelchair accessible.”
