The Government has worked to cultivate its relationship with the Bermuda Taxi Operators Association, the Senate heard on Wednesday.

Government senator Arianna Hodgson highlighted consultation with the group as the Upper House passed the Payroll Tax Amendment (No 2) Act — which she said would reduce the financial burden on taxi operators.

She added: “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 efficiencies, especially in the realm of government tax collection.

“Streamlining processes can yield profound benefits for administrators and taxpayers alike.”

Under the legislation, public vehicle owners will make an annual tax payment when they get their licences renewed.

For minibus drivers, the revised payroll system will become a three-tier tax structure based on the vehicle’s seating capacity.

Minibuses with a seating capacity of up to 15 passengers will pay $750 dollars annually, while vehicles with 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.

Ms Hodgson said the new framework would do away with owners having to engage in “complex calculations” to determine their payroll tax liability.

Opposition senator Dwayne Robinson said the One Bermuda Alliance supported tax relief and reforms lowering dues paid by entrepreneurs.

However, he said, the Government and the BTOA had a “strained” relationship and questioned whether the body had been consulted on the legislation — although he noted the changes were positive for taxi owners.

Mr Robinson said: “I do believe that it would be wise for the Government to speak with the BTOA as to how some of their recommendations that they have made public can be implemented to make this system, and transport as a whole, better.”

He asked: “Is this a step taken to repair that relationship with the BTOA?”

Ms Hodgson responded that the Government was in constant contact with the association.

She added: “It is a relationship that obviously continues to evolve.

“We understand the touchpoints that have been contentious in some areas.”

Mr Robinson suggested that the legislation was an “election promise”.

Ms Hodgson said the Bill went through “a lot” of consultation and revision before it was put before lawmakers.

She added: “So of course it is not appropriate to say that it is an election promise.

“It is something we are constantly thinking about as a government.”

Also on Wednesday, the Senate passed the Contributory Pensions (Amendment of Benefits and Validation) Act 2024.

The Bill amended the 1970 Act to retroactively validate payments that were calculated on the basis of certain increased rates during the period August 2018 to August 2019.