60-85% Excise Tax in Bahamas - and You Think You Have It Bad?
Business has slid 20 percent in the Bahamas year over year, blamed in part by new taxes. At least the John Travolta extortion case and Miss Universe Pageant have helped buoy rentals, says one operator.
Car rental companies in the Bahamas have seen major decreases in business compared to what they saw a year ago thanks to an increase on excise taxes, according to The Nassau Guardian.
Currently, most vehicles are attracting anywhere from 60 to 85 percent excise tax, a 3 percent increase from past rates.
Because of the increase, many of the 35-plus car rental companies, which have seen a 20 percent drop in business, have opted not to update their aging fleets. Additionally, the companies have slashed their prices by as much as 20 percent since 2008.
One operator for Hertz Car Rental said the car rental industry needs assistance from the government in order to pay the fees for vehicles.
The agencies, however, did see a slight boost in business in August in large part to the Miss Universe pageant and the ongoing John Travolta extortion case. Although, operators said that despite the increase, it doesn’t cover much of the loss of business.
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