Tax increase on cars draws fire
regressive in its tax hikes on the cost of licensing cars and bikes.
The Opposition United Bermuda Party attacked Government for putting up the cost of licensing a car by between $50 and $100 on top of increases to keep up with inflation.
The cost of licensing smaller cars in the A-D category went up by 33 percent, but larger cars in the E-G bracket went up by 15-20 percent, said Shadow Transport Minister Erwin Adderley .
This will take the cost of licensing a class A car up from $176.40 to $235.22, class B from $261 to $324.05, class C from $390.60 to $460.13, class D from $490.80 to $564.34, class E from $658.80 to $791.74, class F from $778.20 to $917.11, and class G from $919.80 to $1,065.79.
He said the UBP did not object to the five percent increases to cover inflation over a two year period -- which had always happened -- but it was protesting at the hikes on rates on top of this.
The ordinary driver was getting "hit harder and harder'' for licence increase, and land tax and fuel hikes, said Mr. Adderley.
Mr. Adderley said if Government wanted to reduce traffic by getting people out of their cars, it should not be increasing licensing rates on bikes as well.
The cost of licensing an auxiliary cycle goes up by $12 to $51.60 -- a five percent inflation rise plus $10.
Shadow Environment Minister Gary Pitman said ministers, except the Premier, should be driving smaller class A cars, and there should be no increases for smaller cars.
Health Minister Nelson Bascome said the same system had been operating for years and Bermudians knew they would be hit every year by budget increases.
The Ministry of Transport was trying to reduce the number of cars on the road, he added.
UBP MP Patricia Gordon-Pamplin accused the PLP of trying to tax cars to such an extent that people would not able to afford to use them.
She also claimed if people are taxed so high for their cars, they will insist on using them to get their money's worth.
"If we are serious about the need to cut down on traffic, it would be sensible to encourage people to use auxiliary cycles,'' she said.
"We have got to look at austerity measures. The more you tax an individual, the more they have the right to use that vehicle.'' Minister Without Portfolio Randy Horton said the tax hikes were not as great as the UBP was making out -- amounting to $54 for a class A car and $12 for a taxi.
He said the increases mean it costs 64 cents a day to licence a class A car, $3 a day for a class G vehicle, and 69 cents a day for a taxi.
He said higher taxes had not decreased road use in the past, so Government was implementing an integrated transport system.
Shadow Government Services Minister Allan Marshall said if the PLP wanted to protect the man in the street, as it claimed, it should lower taxes.
There had always been an adjustment for inflation, but the PLP was "stuffing you both sides'' with tax hikes on top " because they have so much money to spend, so many projects''.
Class A vehicle licenses for smaller cars had gone up 33 percent yet bigger class D vehicles had gone up by 15 percent. "You talk about progressive -- that's regressive,'' said Mr. Marshall.
Youth and Sports Minister Dennis Lister said some Cabinet ministers were driving the same GP cars used by the UBP government.
He said the overall rate structure was progressive, with bigger cars taxed more, and the rising taxes hadn't had an adverse impact on car sales.
UBP leader Pamela Gordon said the reason Government had introduced so many tax increases was "poor management''.