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Taxi operators call on Government for some relief

by Barbados Today Traffic
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Taxi operators are calling on the Mia Mottley administration to urgently review the cost for the transfer of a new or used commercial vehicle from one owner to the next.

They complained that with the onset of the COVID-19 pandemic, expenses have remained the same but business had declined significantly and if they did not get an ease soon, many more of them could be out of a job.

In June 2018 in her “mini Budget”, Prime Minister Mia Mottley had announced that effective July 1, 2018 there would be a fee of $400 charged on the transfer/sale of a private vehicle and $1,000 on the purchase of a new or second hand commercial vehicle.

At the same time, the annual registration fee for commercial vehicles was slashed by 50 per cent, and the road tax was abolished and replaced with a Fuel Tax that is being levied at a rate of 40 cents per litre on petrol and diesel and five cents per litre on kerosene.

However, the dramatic increase in the transfer of ownership cost from $1 to $1,000 was met with immediate consternation from PSV and tax operators who demanded that it be revised.

Given the impact of the COVID-19 pandemic on their operation over the past year, officials in the sector said they were renewing that call.

Chairman of the Alliance Owners of Public Transport Roy Raphael told Barbados TODAY the public transportation industry continued to suffer gravely from the effects of the pandemic due to fewer passengers, and this was compounded by the fact that drivers still had a lot of obligations to meet.

“Too often the taxi operators still have to bare a number of costs, for example, we have to look to pay National Insurance, income taxes and other taxes,” said Raphael, whose organisation represents some of the Bridgetown cabmen.

“We are now faced with the $1,000 transfer from one taxi to the next, for which we are going to ask the Government to revisit, because that $1,000 that the Government would have established in moving the transfer from one vehicle – going from $1 to $1,000 – has caused a significant impact on our business,” he complained.

“You can’t compare our vehicles with other companies that are considered to have commercial vehicles.

“I therefore think Government should look at categories of vehicles and at what cost they suspect they can exempt a transfer. Definitely, $1,000 is too much, some of us simply cannot handle it,” he added.

Some taxi operators told Barbados TODAY they would recommend that the transfer fee be capped at between $250 and $300.

The head of one taxi association who did not want to be identified, agreed the fee should be no more than $300, echoing similar sentiments that business was down and all operators still had a number of responsibilities.

“You move from $1 to $1,000, it is a big issue that the guys want to be addressed,” he said.

“It was extreme moving from $1 to $1,000 and they see it as a mistake. The guys are comfortable that $250 to $300 could work and I agree,” he added.

One long-time taxi driver said he was one who had to fork out the $1,000 transfer of ownership fee early last year, and he agreed it was time for a review.

“It is simply too high. We want a review. It is long overdue, plus too, with what is going on with the COVID-19 situation, it is even harder on us. We want Government to review that charge,”
he said.

“We have bills to pay and people are not travelling on public transport like before. But we still have all kinds of bills to pay and some of us have mortgage and children to take care of,” he explained.

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