VAT VENOM
Needless to say, everybody knows about the VAT increase from January to 20 per cent. The features on this page are just a sam- ple of the stories from round the country where taxi/PHV businesses are being hard hit by the VAT increase, on top of hor- rendous fuel charges, insurance hikes, fees rises in various licensing areas… it keeps coming and coming. However, these two articles raise the very valid point that (a) the VAT increase cannot be recouped by taxi/PHV businesses without having to apply to the council for hackney rises, thus hitting their cus- tomers between the eyes and possibly losing them; and (b) the timing of the VAT increase couldn’t be worse, and couldn’t the Government have found other sources of income to help dig them out of the huge deficit hole. We may have to pay up, but there aren’t many around the country looking happy at present…
VAT INCREASE CANNOT BE PASSED ON TO OUR CUSTOMERS
Directors at BW Taxis in Ilminster hoped to be expanding their busi- ness in 2011 but the VAT increase has put their plans on hold and left them in a catch-22. While other businesses can automatically soft- en the blow by passing some or all of the costs on to their customers, taxi firms are left to
absorb the rises. Matthew Sampson told the Chard and Ilminster News: “We’re a bit stuck because the rates are set by the council and we can’t raise them without going through them first. “We’ve had no rise since 2008 but fuel prices have shot up. “And the problem is, if
you increase them too much, you lose trade. But if you don’t increase them, it’s hard to make ends meet.” He added: “Trade is not as good as it could have been, it’s quieter now than it is normally. “I think things will pick up in time but I don’t know if people will last until it does.”
VAT INCREASE A ‘STEP TOO FAR’ FOR STRUGGLING BUSINESSES
“A step too far for businesses which are already struggling” is how Adrian Sainsbury views January’s VAT rise.
“The increase in VAT is very short sighted and seems to be the easy option,” he told the Salisbury Journal. Adrian, proprietor of Salisbury based NPHA member Value Cars, believes there are other better ways to raise revenue.
“Why when the govern- ment lent banks money didn’t it build into the arrangement that the banks would hand over large amounts of the profits which were made?” he asks. “Why hasn’t the gov- ernment opted to charge people a tax when entering our
country like many other countries do? “Our airports are some of the busiest in the world, and a £10 tax per person entering would go a long way - as far as I am aware, none of this has been considered.”
He said increased fuel costs and government cuts mean transport companies are receiv- ing very slim pickings, and many operators are operating on very low margins, hoping better times are around the corner. “I feel these better times are some time off,” he said, “as this latest VAT increase will have only a negative impact on the cus- tomer, and consumer spending will continue to drop.
“Why did the increase need to be in January when people have the least amount of money? Why not wait for spring when peo- ple are less concerned and credit card bills are paid off?
“Why don’t the people in high places come up with more innovative ideas which motivate and encourage the country, instead of put- ting another tax on the poor?” he said. “At Value Cars, we did- n’t pass the increase on to our drivers in January but, of course, the company will have to foot the bill.
“I feel 2011 will be bet- ter than 2010 - my prediction for the year is slow growth and careful spending,” he added.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96
