Infrastructure Minister O’Dowd backs taxi and private hire industry against new tax pressures

Image credit: Department for Infrastructure

Northern Ireland’s Infrastructure Minister John O’Dowd has voiced his strong support for the local taxi and private hire industry, calling for a halt to additional tax burdens.

The Minister's intervention comes amid a Treasury and Revenue and Customs and Department of Transport consultation on the VAT Treatment of Private Hire Vehicles, which concludes on 8 August.

In a letter to the Secretary of State for Transport, Rt Hon. Louise Haigh MP, Minister O’Dowd stressed the significant role of the taxi industry in the local economy. He highlighted its contributions to employment, tourism, and social inclusion, asserting that every effort should be made to support this vital sector.

Minister O’Dowd acknowledged the consultation’s purpose of evaluating the tax implications of recent court rulings and gathering views on potential government actions. However, he expressed concern over the dwindling number of taxi drivers and operators, which has adversely affected society, particularly the most vulnerable.

Minister O’Dowd said: “I very much value the contribution of the taxi industry to our local economy, employment, tourism and social inclusion. I believe that, wherever possible, we should strive to support them.

"I appreciate that this consultation is to understand the potential tax impact of recent court judgements on the sector and to invite views on potential government interventions to manage that impact. But with the decreasing number of taxi drivers and operators locally and the negative impact that those changes are having on society especially the most vulnerable, I am concerned about what additional tax burdens may mean. I would be concerned that people may be discouraged from staying in the industry and small operators could go out of business altogether.

"I encourage our taxi industry to make their views heard in this consultation because a strong response will provide powerful evidence to negate the need for further tax burdens on the sector.”