Campaigners warn the Chancellor must scrap the 20 per cent taxi tax, which would damage the economy and burden Britons.
They say passengers are facing ‘sleepwalking’ as fares rise by more than £200 a year.
Opponents have written to Jeremy Hunt, urging him to launch a consultation ahead of his budget in March.
The proposed tax, as a result of the High Court ruling, could see VAT added to all private hire and minicab rates.
Former Conservative minister Paul Scally said yesterday: “We need swift and decisive action rather than risk sleepwalking towards a tax that is hugely damaging to families and jobs.
“We need to see action and not further delay.”
Campaigners warn that pubs, clubs, restaurants and theaters will lose money.
They also point to safety issues with vulnerable people not taking taxis home if they are too expensive.
Gareth Cadwallader, of the Stop Taxi Tax campaign, insisted: “This huge new tax will drive up prices for a safe journey home, impact jobs and stifle economic growth.
“Further hesitation and delay will only create uncertainty and put livelihoods at risk.”
A Treasury spokesman said: “The High Court ruling does not change the tax situation, and ticket prices remain subject to VAT at the standard rate.”