FERMANAGH taxi drivers have been left fearing for the future and their livelihoods after proposed reforms to taxes and VAT threaten to deeply hamper the local and national cab industry.
Many households and residents are concerned over what financial changes will be implemented when UK Chancellor, Rachel Reeves, sets out her next budget plans on October 30.
The Covid-19 pandemic had a devastating impact on the cab industry and a new threat, the introduction of ‘taxi tax’, is expected to heap more pressure on the many Fermanagh firms.
Up until October, taxi firms in the North and the UK were not required to pay value added tax (VAT) as they’re classed as independent contractors and would, in turn, not meet the earnings threshold of £85,000 per year.
The High Court recently imposed that taxi companies are now required to charge VAT, in a major blow to the local taxi industry, prompting fury and anger from many cab owners.
Fermanagh and South Tyrone MLA, Deborah Erskine, has committed to supporting local taxi firms.
“It’s good to see the [Infrastructure] Minister has now announced he will stand with the taxi industry on the VAT issue and is engaging with Treasury on it via the Department,” said Ms Erskine.
“In recent weeks in the [Stormont] chamber, I’ve been calling for cross-departmental action.
“In past 10 years, the number of taxi licences has decreased by 8,500. VAT [value-added tax] changes could result in operators going out of business or no new drivers entering the industry.
“Don’t even mention trying to get a taxi in the countryside or if in the city at peek times,” she added.
The UK Chancellor of the Exchequer, Rachel Reeves, has not committed to whether she’s going to introduce ‘taxi tax’ in the October budget. She has warned that major changes are on the way.
“We’ve got a budget on October 30 and we will set out our policy then, but it’s always important when you’re deciding tax policy to strike the right balance,” she told US news channel, ‘Bloomberg’.
“You need to bring in the revenue to fund vital public services, but we’ve also got to grow the economy. I won’t do anything that makes it harder to achieve that economic growth and prosperity.”
Related posts:
To read more.. Subscribe to current edition
Receive quality journalism wherever you are, on any device. Keep up to date from the comfort of your own home with a digital subscription.
Any time | Any place | Anywhere