Hired car dealers want ease
Published on: 9/7/06.
by JULIE WILSON
EQUAL TREATMENT is the cause for which players in the multi-million dollar hired car sector will be lobbying Government.
They are asking for equal concessions as compared to other tourism-related services which currently benefit from generous duty reductions.
At the Yacht Club yesterday, close to 30 operators met with the view to firstly revive the hired car association, which had been dormant for quite some time, and to discuss a recent cabinet ruling in St Lucia which granted a 100 per cent waiver of import duties and excise tax on the purchase of new vehicles by companies and individuals engaged in the car rental sector.
As part of the agreement, the operators cannot purchase more than ten cars per business and they must be used exclusively in the car rental sector.
Aldo Ho-Kong-King of Drive-a-matic Car Rentals said the concessions were granted to offset the demands in transportation expected with Cricket World Cup (CWC).
He said the operators hoped Government would adopt an approach similar to St Lucia's and pay greater attention to the transportation sector.
Ho-Kong-King said, in the absence of official figures, that the more than 50 players in the industry pumped close to $30 million in revenue annually into Government's coffers.
Although the hired car industry is a crucial part of the tourism industry, it was not properly recognised by Government, he said.
"It is important for the hired car association to come together as their own association to deal with issues relating specifically to their needs," he noted.
Richard Cummins of Chelsea Motors also spoke to the issue of duty-free concessions within the context of increasing the number of vehicles in time for CWC.
"If it [World Cup] is long-term then it means that we need to increase our fleet long-term in keeping with the Prime Minister's statement that CWC was a long-term plan of development for the island," the businessman said.
Cummins said the hired car dealers must get together and reach a consensus on the issue.
"Duty-free concessions have been given in St Lucia and we have to decide whether we can ask Government for similar concessions or a reduced amount."
Others in the audience agreed with reduced concessions, even if it was only limited to paying less duty on the importation of cars.
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