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OBA not surprised by vehicle licence abuse

Photo by Mark TatemPat Gordon-Pamplin

Opposition MPs said it was no surprise a vehicle licence exemption for seniors had been abused, costing Government $17 million in lost revenue.Those aged 65 and above who own a car have not had to pay to licence their vehicle since 2007 but the policy is now likely to be reversed, according to a pre-Budget report released by Premier Paula Cox on Monday.The report revealed that the number of cars licensed to seniors has risen by 26 percent in the last five years, with a 358 percent increase in the largest category of car (class H).“This blanket tax expenditure, while popular, has been very open to abuse,” the report stated. “This tax expenditure has cost the Government $17 million since its inception. The Government will examine this tax expenditure with a view to putting into place a provision that assists seniors in need and is less open to abuse.”Shadow Transport Minister Patricia Gordon-Pamplin described the policy as a “typical pre-election promise that was not thought through”.She said: “It may have sounded good to garner votes in 2007 but now it is time to pay the piper. It is not surprising that Government once again finds itself having to roll back promises made, once they evaluated the practical application of the policy. It is proof positive that you cannot buy votes with taxpayer money.”It is understood some motorists aged under 65 are abusing the system by registering their cars to an elderly relative to avoid licence fees.One Bermuda Alliance MP Mrs Gordon-Pamplin said: “I have not seen many seniors driving class H vehicles and, as that class of vehicle is on the upper end of the cost spectrum, one would question whether the policy made any sense.”She said her party colleague Louise Jackson “called for a means test before giving away the shop but the Government ignored her”.“Her position is now totally vindicated, albeit $17 million later,” added Mrs Gordon-Pamplin.Mrs Jackson, the Opposition’s spokeswoman on seniors, said she hoped Government would now means test the exemption for cars above class C.“The lower classes perhaps ought to be exempt,” she said. “Once you are into larger, luxury cars, it’s a different story and you have to ask if the exemption is justified.”Government did not respond to a request for further comment before press time last night.Useful website: www.tcd.gov.bm.

Car licence fees at a glanceClass A: up to 138in = $281.05Class B: exceeds 138in to 144in = $386.90Class C: exceeds 144in to 150in = $547.50Class D: exceeds 150in to 156in = $675.25Class E: exceeds 156in to 162in = $945.35Class F: exceeds 162in to 166in = $1,095.00Class G: exceeds 166in to 169in = $1,273.85Class H: exceeds 169in to 175in = $1,551.25