The Tribune

By NEIL HARTNELL

Tribune Business Editor

A BAHAMIAN importer/distributor yesterday urged the new government to use its upcoming Budget to create a 'level playing field' for electrical scooters, telling Tribune Business the existing 80 per cent import tariff made the product "uncompetitive".

Explaining that this rate was inconsistent with the 25 per cent Excise Tax/import duty rate applied to electrical hybrid cars, Pedro Wassitsch, whose family own Montrose Avenue-based Contrax Ltd, said he had written to former Prime Minister Hubert Ingraham and ex-environment minister, Earl Deveaux, on the issue earlier this year but received no reply.

Pointing out that electric scooters were "ideal vehicles" for tourists visiting the Bahamas, as well as transportation on small Family Islands such as Spanish Wells and Harbour Islands, Mr Wassitsch said there was "a big difference" between paying $250 in duty on a $1,000 import, and the existing $800 that the Government was currently levying.

Explaining how he became involved with the product, Mr Wassitsch told Tribune Business: "I went to Shanghai a year-and-a-half ago, and saw these electric scooters running around. I spoke to my people in Shanghai, and got the [Bahamas] representation for those people that manufacture those scooters.

"We brought in two sample units, but was surprised to be charged 80 per cent duty. At that rate, it's not competitive."

Mr Wassitsch told Tribune Business that the 80 per cent tariff rate meant electric scooters were not on the same 'playing field' with electric, hybrid cars, upon which a 25 per cent Excise Tax rate is being levied.

The discrepancy appears inconsistent with the previous FNM administration's aim of using tax policy to encourage the importation of smaller, more environmentally-friendly and fuel efficient vehicles - a role scooters seem ideally designed to fill.

"We have an ideal vehicle for the tourist," Mr Wassitsch told Tribune Business. "All you have is a throttle. There are no gears, and you have no muzzle or exhaust. It's very quiet, and would be especially ideal for the Out Islands - Harbour Island, Spanish Wells and places where there is not much distance to be travelled. They also do not pollute the environment through noise or fuel."

He added that the scooters Contrax was looking to import were "easy to maintain", carrying only a battery and electric motor, the latter of which was built into the wheel. No switches, chains or transmission mechanisms were included in the design.

Asked by Tribune Business about the impact a reduction to a 25 per cent duty rate would have, Mr Wassitsch replied: "That makes a big difference. Duty is applied on CIF costs. We're talking about the base import unit costing $1,000-$1,500. You're adding $800 in duty versus $2540. That makes a big difference."

He told this newspaper he had attempted to address the issue with Customs, former minister of the environment, Earl Deveaux, and ex-prime minister and minister of finance, Hubert Ingraham, but "unfortunately I did not get a reply".

Acknowledging that Contrax was still exploring the potential Bahamian market demand for electric scooters, Mr Wassitsch said: "I don't know how many scooters are brought into the Bahamas on a daily basis.

"Let's assume we get 10 per cent of the market. I would assume that the Bahamas imports 500-800 scooters a year, and if we have 50-80 units, that will be useful."

Mr Wassitsch said Contrax's main business was as a "non-stock distributor", supplying building material and handcraft homes.

Over a 10-year period, he said, Contrax had sold more than 50 handcraft homes "throughout the Bahamas", its major success being on Highbourn Cay in the Exumas, where some 14 units existed.

"They are extremely easy to erect and very environmentally friendly," Mr Wassitsch added.