Fleet News

CTA wins its battle over minibus VAT

THE Community Transport Association has won its battle to widen the range of charities eligible to buy minibuses without paying VAT.

The CTA was outraged by measures announced in the November 1996 Budget to charge VAT on minibuses used to transport disabled and elderly people, unless operated by a charity which provided domiciliary care or ran institutions such as day care centres.

The CTA feared the move would endanger the future of hundreds of small minibus operators catering for the disabled. The Government has now published an Extra Statutory Concession, to be back-dated to November 1996, setting a zero VAT rating for charities which serve disabled people and their transport needs.

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