Barbados car rental companies furious over tax hike

Car rental companies are furious over a government decision to increase a special driver’s permit, which all visitors must purchase, by precisely 1,000 percent. Originally, tourists had to buy a $10 permit, if they wished to drive a rental car or any other vehicle during their time in the Barbados. The Caribbean nation’s government, however, has decided to increase this fee to $100. The increase is expected to come into effect immediately and local car rental companies are worried that such a high tax would essentially discourage most tourists from hiring a car on a short-term basis. With a $100 added on to each car hire, it may no longer be economical to rent a vehicle if someone plans to be in the Barbados for only a few days. Ray Straker, who owns and operates Stingray Car Rentals, told journalists that the entire Barbados car hire industry was “in a state of shock.”

Guy Myles, who owns Coconut Car Rentals, another local firm, echoed these same sentiments, expressing his displeasure at the government’s ill-thought out decision, calling the massive hike “outrageous.” Maples also noted that it would be highly unlikely that visitors would rent vehicles for under three days, if they are forced to pay such a high fee. This means that car rental firms are set to lose a very significant number of clients in the coming months and those that relied on short-term car hires will find themselves in an especially difficult situation.

There is, however, a possibility that the car rental industry, dominated by local firms, will protest the move. Industry representatives plan to hold a meeting in the coming days, in order to discuss the new tax.

www.coconutcars.com