THE Chancellor must axe a 20 per cent taxi tax which will harm the economy and strapped Brits, campaigners warn.
They say passengers face “sleepwalking” into price rises of more than £200 a year.
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Opponents have written to Jeremy Hunt, urging him to launch a consultation before his Budget in March.
The proposed levy, the result of a High Court ruling, could see VAT added to all private hire and minicab fares.
Ex-Tory minister Paul Scully said yesterday: “We need quick, decisive action rather than risk sleepwalking into a seriously harmful tax on families and jobs.
“We need to see action not further delay.”
Campaigners warn pubs, clubs, restaurants and theatres will all lose money.
They also point to safety issues with vulnerable people not taking taxis home if they are too costly.
Gareth Cadwallader, from the Stop the Taxi Tax campaign, insisted: “This huge new tax will lead to higher prices on a safe trip home, impact jobs and stifle economic growth.
“More dithering and delay will only create uncertainty and risk livelihoods.”
A Treasury spokesman said: “The High Court ruling does not change the tax position, it remains the case fares are liable to VAT at standard rate.”
