Taxis: VAT

(asked on 2nd September 2025) - View Source

Question to the HM Treasury:

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 Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 8th September 2025

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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