Source · Select Committees · Transport Committee
Recommendation 30
30
Deferred
Reform VAT rules for DRT services with Treasury, recognising them as public transport.
Recommendation
The Department should consider, with the Treasury, reform to the current VAT rules applicable to DRT services. This should aim to recognise the character of DRT as a public transport service, even when vehicles smaller than a Public Service Vehicle are used. (Recommendation, Paragraph 112) A strategy for buses
Government Response Summary
The government recognises the issue but states VAT policy rests with HMT and any changes would need wider tax policy consideration. DfT has conveyed the sector's concerns to HMT and will continue to highlight them, but does not commit to actively considering reform itself.
Government Response
Deferred
HM Government
Deferred
The Government recognises this is an important issue for the DRT sector. Policy responsibility for VAT rests with HMT, and any changes would need to be considered for their impact in the context of the Government’s wider tax policy. The Department for Transport has conveyed the sector’s concerns to HMT and will continue to highlight these.