Annual $18m Loss
The rental car sector loses over $18 million annually to private cars operating as rentals.
Many opted for rental cars as they were cheaper, Fiji Rental Car Association president Shalit Kumar said.
He said some hired their cars to the public for $50 a day without any bonds.
At least 1000 private vehicles were operating as rentals in a day in Fiji, Mr Kumar said.
“This is black money or unaccounted cash,” he said.
“It was not only a loss to the rental companies but also to the economy and Government in the form of taxation.
“Rental companies were paying taxes and operating in a legal way but we had some individuals who were taking our hard earned cash away from us.”
Their concerns were not about overseas investors opening rental car companies in Fiji, Mr Kumar said.
“These operators are operating openly, advertising on social media and there are many individuals running fleets of up to ten or more private cars,” he said.
He said saw a spike in the numbers of illegal operators.
“Just imagine if the 1300 rental cars surrender their permits, it will cause chaos in the country,” he said.
Assistant Minister for Finance Yosef Immanuel said the Government would set up a taskforce to look into the issue.
The Fiji Rental Car Association had brought to light several challenges facing the rental car sector such as this, he said.
Many had called for better enforcement with agencies, Mr Yosef said.
“The Government is committed to creating an enabling environment for rental car businesses to operate in,” he said.
“We will may not be able to provide solutions to these challenges overnight, we wish to assure the Association that we will work with industry stakeholders to find amicable solutions.”
He said names of the taskforce would soon announce the members of the taskforce that would look into the issue affecting rental companies.