Cut VAT ‘or taxi fares will rise 20%’

TAXI fares will jump by 20% unless Transport Minister Seamus Brennan cuts the Government VAT on fuel, it was claimed yesterday.

The National Taxi Drivers Union says it cannot continue absorbing the rising cost of petrol due to climbing world oil prices.

NTDU boss Vinnie Kearns said: “VAT presently amounts to about 60% of the total cost of fuel.”

The union said cabbies used up extra fuel driving around looking for business because there was no space at taxi ranks.

It also wants Mr Brennan to give the new taxi regulator the power to increase taxi fares instead of local authorities.

Meanwhile, truckers have warned that transport costs will rocket if Minister of State Jim McDaid goes ahead with a ban on “supercube” lorries due to “safety concerns”.

The Irish Road Hauliers Association claims the minister is making the proposal to cover up the “fiasco” that Dublin’s Port Tunnel wasn’t built high enough to accommodate the high-volume vehicles.

IRHA president Eamon Morrissey said: “This is just a scare mongering stunt by the Government to make up for the fact they have made a mess of one of the biggest infrastructural projects in the country.

“A height restriction is a short-sighted policy and fails to take into account the rapid development and innovation within the road transport industry.”