The car rental levy has been pushed back until October 15 and will be capped at $5 daily for up to seven days rather than the $10 previously announced.
The Government made the announcement about the changes yesterday through a press release from the Barbados Government Information Service.
The levy, first outlined in the 2025 Budgetary Proposals by Minister in the Ministry of Finance Ryan Straughn, will replace the requirement for a visitor’s permit, and apply to all vehicle rentals by both visitors and residents.
“Minister Straughn explained that the rate will be capped at BDS$5 per day for up to seven days for all legally registered “H” licence plate rentals, regardless of the booking date. He noted that revenue from the levy would help fund the work of the newly established Barbados Ocean and Coastal Authority and Barbados Nature Conservancy Trust, supporting efforts to safeguard coastlines, gullies, and parks,” the release read.
Payment of the levy will be made monthly, in line with the regular PAYE schedule. Some of the car rental operators complained about a lack of guidance on how to implement the original $10 daily levy that was to take effect from October 1 and applied to all renters – tourists and locals.
Some rental companies said they received no instructions on how to collect or remit the payments.
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. ( BGIS)
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