Some car rental operators said they are without guidance on how to implement a $10 daily levy that was to take effect Wednesday, October 1.
The vehicle rental levy applies to all renters – tourists and locals.
But as of that date, some rental companies said they have not received instructions on how to collect or remit the payments, leaving them scrambling to inform customers in an already struggling market.
“I’ve been given no direction how it should be collected, how it should be paid. Really and truly, I don’t know if it has started,” said Mohammed Adams, owner of Adam’s Car Rental.
The lack of communication appears widespread as Kason Cupid, of Bim Cars voiced similar concerns.
“We have not been given any instruction on how we are going to remit this payment, how does it affect our business going forward. So, we haven’t gotten any information from them,” he said,
No correspondence
Cupid, who is part of a car rental group, said none of his colleagues had received correspondence from the Government about how the levy would affect the industry or what issues operators were facing.
“The Government isn’t really interacting with us,” he said. “They have our information. They have our emails, our numbers . . . so why don’t they reach out?”
The uncertainty comes as some rental companies report the worst business conditions in recent memory.
Tramaine Reece, owner of Mr T’s Car Rentals said: “This month alone, we have about 12 vehicles and I probably had about three rentals out for the month.”
Reece noted the problem is industry-wide.
“If you take a trip to the south of the island, most of the major car rental companies, they just have cars lined up. No one is getting their rentals out often enough.”
Customer resistance has already begun as companies attempt to inform clients about the new charge.
“We’ve had some push back from some of them especially the ones who would be coming and staying for three or four months. Obviously they wouldn’t want to be paying so much extra,” Cupid said.
Opting for taxi
Reece confirmed that long-stay visitors – many of them older guests who previously rented for extended periods – were opting out.
“Hearing that, they’ve opted not to rent and just get a taxi when they need to go to the supermarket. Already, we’re seeing persons say that they’re
not going to rent for the time that they usually rent,” he said.
Adams warned that the levy could have the opposite of its intended effect, potentially driving more business to illegal operators.
“Do you really think that a guy who is coming into the business now will go with a hired vehicle where he knows that everybody he rents a car to has to pay $10 a day?” he asked. “Or do you think that he will continue with an illegal rental where he knows they won’t have to pay anything?”
“They’re trying to discourage persons from doing private rentals but actually these measures are encouraging it.
“What they could have done instead was simply add an additional $5 on the cost of the visitor’s permit.”
While the Barbados Hotel and Tourism Association (BHTA) was reportedly attempting to intervene, Adams said rental operators should have been consulted before the policy was implemented.
Reece said: “I am not sure if they would have spoken to the bigger companies but I believe that it should be a general open meeting. Anyone with a permit should be able to attend the meeting for their rentals.”
He said that larger companies may not feel the impact as acutely as smaller operators.
“For me, rentals is my main source of income. So, with the island being dead like this, I have nothing else going on right now,” Reece stated.
Cupid noted that car rental operators already face significant tax burdens as one of the highest taxed group of businesses and “unlike others we don’t get concessions and they still asking us to pay additional burdens”.
Ryan Forde, chief executive officer of the BHTA said: “We are awaiting the policy note and final instructions from the ministry since our previous meetings. Once officially received, we will be in a better position to comment.”
The levy was announced in the 2025 Financial Statement and Budgetary Proposals in March, with the initial implementation date of July 1 pushed back to October 1. The requirement for visitors to obtain a Visitor Driving Permit has been abolished with the levy’s introduction, though a valid driving licence is still required. (DDS)
