Stuck in neutral: Car rentals push for tourism status

Car rental operators in Barbados have raised concerns over a new daily levy, warning that it could exacerbate existing inequities in the industry. The levy, initially set at $10 per day, was postponed to October 15 and reduced to $5 for the first seven days. While some industry players view the cap as a positive adjustment, others argue that it highlights a more profound issue: the classification of car rentals under the transport sector rather than tourism. This classification subjects the industry to a 17.5% VAT rate, significantly higher than the 10% rate applied to tourism businesses.