Easier clearance, no duty - Stewart seeks to reduce rental red tape

Chad Bryan, Gleaner Writer

High on president of the Jamaica Rent-a-Car Association (JARACA) Diana Stewart's 2013 list of things to do is lobbying government to reduce the time and multiple steps required to clear vehicles. She also wants the sector to obtain duty-free concessions.

Stewart noted that "the transactions go through approximately 11 processes, starting at the Tourism Product Development Company and ending with the Ministry of Finance and Planning. It's a long and arduous process taking up to two to three months and after that they (the vehicles) are cleared into bond stores". She made a submission to Parliament last February to have the process shortened.

Stewart also explained that concessions are crucial because of the expense involved in keeping rental cars on the road and revenue the government is getting from these vehicles.

"We're asking for a duty-free concession on these vehicles. It costs $500,000 with insurance, fixing the car and routine servicing to keep them on the road. Of this amount 16.5 per cent goes to the government and so we're asking them for a concession," she explained.

"We have 3,500 vehicles in the fleet and usually we bring in approximately 780 - 880 vehicles. (In 2012) we brought in approximately 500 because of the cost of funding."

Late last year, at the JARACA's 42nd annual general meeting and luncheon held at the Terra Nova All-Suite Hotel, Waterloo Road, St Andrew, the connection between that organisation and tourism was repeatedly emphasised. Early in the new year the two-term president maintains that position, saying JARACA provides crucial ground transport for visitors.