Changes to payroll tax regulations for minibus and taxi owners could result in a significant boost to government coffers, the House of Assembly heard.

Presenting the Payroll Tax Amendment (No. 2) Act on Friday, Wayne Furbert, the Minister of Transport, said that revenues would increase from around $35,000 each year to more than $220,000 under the new rules.

Public vehicle owners will have to make an annual payment when they get their vehicle licences renewed.

Minibuses with a seating capacity of up to 15 passengers will pay $750 dollars annually, while vehicles that have between 16 and 24 seats will pay $1,000. Minibuses with more than 24 seats will pay $1,500.

All taxi owners will have to pay a flat rate of $600.

According to Mr Furbert, taxi owners typically paid an average of $1,000 in payroll tax annually and he said that the $400 reduction would “ease the financial burden on taxi operators and help create a more balanced and equitable structure”.

He told MPs: “Here’s where the rubber meets the road. The annual tax that we collect on minibuses is roughly $35,000 a year.

“By doing this the Government will collect approximately $221,500 — a 600 per cent increase.

“The reason why? Some do not pay their payroll tax. Some underestimate their payroll tax.”

Mr Furbert said the simplified system represented “a step forward in improving the efficiency of the tax process in the public vehicle sector”, and did away with the need for “complex calculations”.

He told the House: “The purpose of the Bill is to further harmonise and modernise the public service vehicle industry.

“It is very important that we embrace efficiency in government tax collection in our relentless pursuit of excellence.

“We must never underestimate the transformative power of efficiency especially in the realm of government tax collection.

“By establishing a clear tiered structure based on seating capacity, the system removes the need for calculations, therefore facilitating easier compliance with tax regulations.

“This move will undoubtedly create greater compliance, provide clarity for owners, while we continue to facilitate a more orderly and transparent operating environment across the industry.”

Susan Jackson, the One Bermuda Alliance spokeswoman on transport, questioned why minibus owners should have to pay any tax, claiming that many of them earned less than the minimum wage.

She also criticised the Government for failing to upkeep the island’s roads, pointing out that minibus drivers “have to work in an environment that is not conducive for them”.

Ms Jackson added: “Operators would like a seat at the table.

“They would like to be a member of the Public Service Vehicles Licensing Board and have some input into how the management and development of policies and enforcement are conducted and created within the ministry.”

The claims were disputed by Derrick Burgess, the Deputy Speaker of the House, who said he suspected that Ms Jackson had never driven a minibus.

He said: “The Government is being as accommodating as possible to drivers.

“We’re saying ‘give us your 600 and you’re on your way’. I don't think we can get any better than that.”

Government backbencher Anthony Richardson claimed that Ms Jackson had only added confusion into the debate.