By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Taxi Cab Union’s president has hailed the expanded Excise Tax elimination to cover imported vehicles less than five years-old as “a tremendous benefit” to his members.

Wesley Ferguson told Tribune Business that the move, unveiled as part of the taxation adjustments accompanying the 2024-2025 Budget, will enable more taxi drivers to afford larger, newer vehicles at a time when “tourism is booming”.

And he added that extending the Excise Tax break, which previously only applied to brand new vehicle imports, to those which are five years-old or less will mesh well with the taxi cab industry’s new driver code of conduct and drive to boost professionalism.

Prime Minister Philip Davis KC, in unveiling the expanded Excise Tax concession, told the House of Assembly: “Along with the assorted items that have either had reductions in Customs duty, or have been made duty free, we have increased the vehicle age requirement from three years or less to five years for exemptions for taxis, livery and tour buses under the Excise Act.”

The Excise (Amendment) Bill 2024, tabled in the House of Assembly as part of the legislative reforms contained in the 2024-2025 Budget, confirms that the main goal is to “allow taxi cab, livery car and omnibus owners to be able to purchase used motor vehicles five years and under”.

Mr Ferguson, who was unaware of the tax relief until informed by Tribune Business, said: “That would be very beneficial to taxi drivers. They would love a move like that. I applaud the Government for making such a concession to taxi drivers. Vehicles are getting more and more expensive, and not every driver can afford a brand new vehicle.

“With tourism booming as it is now, taxi drivers need larger vehicles but cannot always afford them. They are very expensive. Presently, in order for taxi drivers to get a duty concession, it has to be a brand new vehicle for this particular year.

“For the Government to relax that to allow taxi drivers to bring in a vehicle not more than five years-old is very welcoming news for the taxi industry. It’s going to be tremendous. I sometimes have to order large vehicles for the taxi union’s use...,” the taxi union chief continued.

“When you have to tack on VAT and duty on to the vehicle’s price, it comes close to what the value of the vehicle is. If we get that duty-free [Excise Tax] concession that will be a big saving for taxi drivers. If a driver wants to operate properly in this industry, and accommodate a large family in his vehicle, he is looking to spend in excess of $50,000, $70,000, $80,000 for a brand new vehicle.”

Mr Ferguson said the Excise Tax elimination on used vehicles less than five years-old was further useful in reducing the cost because commercial banks and other formal lenders typically do not provide loans for used vehicles. “Not many taxi drivers have $35,000 in funds,” he added.

The taxi union president said the improved vehicle affordability also coincides with, and aids, efforts to enhance driver professionalism and portray the industry’s participants as self-employed entrepreneurs.

“With the new taxi franchises, if we’re going to upgrade the tourism product and put us on the cutting edge of technology, and present ourselves as business owners and entrepreneurs, we need some breaks so we can present ourselves to tourists in a very professional manner with a nice vehicle,” Mr Ferguson said. “That’s big for taxi drivers. That’s welcome. It’s a happy moment in the taxi industry.”

Jobeth Coleby-Davis, minister of transport and energy, previously explained that while a standard of the taxi cab industry “exists in everyone’s mind”, the Code of Conduct aims to document and codify those standards and provide a guide that can be referred to.

“The Code of Conduct will assist in providing a concrete and defined framework for the service standards,” she said. “The standards outlined in the Code of Conduct are not unreasonable, onerous or difficult conditions. We aim for the sector to be the best, and being the best means that we have clear values and expectations.

Mrs Coleby-Davis underscored the important role taxi cab drivers hold as among the first Bahamians with whom tourists interact as “official number one ambassadors” and “driving equality and leading to fight for equality” in the country’s history.

“I’ve met many of them – some who are still driving, who shared stories of how they were able to take care of their families, educate their kids, and make a good living off of the taxi industry,” she said.

The Code of Conduct, a copy of which was provided digitally, listed several provisions for public service drivers to adhere to, including vehicle appearance, disorderly conduct, a ban on smoking and alcohol consumption, littering and solicitation.

The Code of Conduct also outlines the disciplinary procedure, which categorizes breaches of the code between “major” and “minor”.

Some “minor breaches” are the unlicensed sale of items, barbering, littering and non-compliance with dress codes, while “major breaches” can be drunken or disorderly conduct, lewd behaviour, public urination, verbal abuse, threats, and sale of illegal substances, among other breaches.