While the Barbados Revenue Authority (BRA) remains open to hearing from stakeholders, there will be no rolling back of the Car Rental Levy.
A media release from the BRA said after a series of sensitisation sessions with car rental operators which guided them through the process for collecting, filing and paying the levy over the past week, a number of concerns and suggestions were raised.
Revenue Commissioner Jason King said they welcomed the feedback and were committed to a transparent process.
“We recognise that any new measure brings adjustments and we value the constructive feedback shared by our stakeholders. Our team has documented the concerns raised and we will submit those outside of our remit for further consideration and refine the aspects within our control to address some of the technical challenges noted,” he stated in the release.
In spite of this, the levy, which was announced as a budgetary measure in 2025, remained in place.
“The Car Rental Levy represents an important reform and the Authority will continue to work with operators on this transition. We are firm in our mandate but open in our approach,” King continued.
“The insights shared by operators will help us strengthen the system and enhance communication. Nevertheless, we encourage rental operators to prepare the documentation and file the levy return when due.”
The Car Rental Levy came into effect on October 15 and applies to all vehicle rentals for both residents and non-resident visitors. It is $5 per day, up to a maximum of $35 per rental, and is included in the daily rental fee.
Car dealers spoke out against the measure which was originally assessed at $10 per day, intending to replace the visitor registration permits which cost $10 for stays under two months and $100 for two months. Those on the Welcome Stamp and others with long-term rentals like university students would feel it most, they said.
The Barbados Hotel and Tourism Association also sounded the alarm, pointing out in seeking to replace about $350 000 in lost revenue from the permits, the levy could earn as much as $13 million annually, raising car rental costs by 12.5 per cent.
The General Insurance Association of Barbados also warned it would raise the cost of claims insurance.
BRA reminded operators they are required to file and pay the levy monthly in TAMIS, with the first filing period covering October 15 to 31, 2025, and the first submission due by November 17. (PR/SAT)
The post Car rental levy ‘here to stay’ appeared first on nationnews.com.