Bahamian used Car dealers yesterday said they were praying the Prime Minister will reverse the 85 per cent Excise Tax rate on cars with a more than 2,000 cc engine capacity, several having been forced to leave imported vehicles on the dock last week because they had not budgeted for the increased payments.

Partner in S&L Auto, Solomon Uboh, told Tribune Business he was surprised when the Customs Department last week sought an extra $7,000 from him to collect his cars from the dock.

And this was only hours after the Prime Minister had announced that the duty regime for car imports had been consolidated to two rates, 65 per cent and 85 per cent, with the rate no longer determined by size but engine capacity.

Mr Uboh said the new rates will drastically alter his business model, as he will have to import cars with smaller engines to keep his lot filled and offer customers competitive prices.

"I really bring in BMWs, but now because of the increase I have to bring in something smaller to stay in the game," he said. "But I have to live according to whatever they [government] say."

Antonio Forbes, operations manager at Grace Auto, said people do not typically invest $30,000 to $40,000 on new cars, making used cars their first choice.

Yet the duty rate increase has locked his latest vehicle imports in limbo on Customs' Dock, and he will likely slash the amount of imports his company brings in.

"Now you have to get your cars off the dock piece piece, because you already budgeted (60 per cent) for them," said Mr Forbes. "You get this one this week and get the others the next week, but if you keep it there too long Customs will charge you for storage."

He said the government should have let businesses like his know before imposing the new tax, or given it a July 1 start date like many of the other increases and changes unveiled in the Government's 2010-2011 Budget.

"The Government needs to reconsider this and think about it," said Mr Forbes. "It causes you to cut back on a lot of things, but mostly the [car] order is not as big."

He suggested the Government should have cut its spending or taxed the numbers houses instead of imposing tax increase that are sure to hurt business.

One used car lot partner, Ray Thurston, said he only imports vehicles with smaller engines.

Mr Thurston said the increase could minimally affect him, but he had always imported fuel efficient vehicles.

"I try to keep the engines small, especially with the gas situation," he said. "I'll feel it, but it won't be as severe."

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