§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer if he will take steps to ensure that the taxi buses providing scheduled services in consequence of the recent initiatives on transport policy are exempted from value added tax on the same basis as large public service buses; and if he will make a statement.
§ Mr. Lilley[holding answer 21 March 1989]: The zero-rating of bus fares is limited to vehicles capable of carrying 12 or more passengers, that is, those which are used, in the main, to provide the bulk of mass public transport. The Government have no plans to extend zero-rating to smaller vehicles.