In an effort to soften the financial hardship faced by taxi drivers fitting $2,000 GPS systems to their vehicles, Government is scrapping import duty on equipment being brought to the Island.

The GPS system is now a mandatory requirement for taxi operators and around 350 of the Island's estimated 600 taxis have fitted the hi-tech equipment in their cabs.

But the high cost has led to many taxi owners expressing dismay at having to pay $2,000 for a GPS system and a further $500 installation fee.

In response to their concerns and a request from the taxi industry for some financial relief, the Government offered a concession in the Budget that will see import duty being scrapped for the GPS systems coming to Bermuda. And Transport Minister Dr. Ewart Brown said the suppliers importing the equipment would be told to pass on the 22 percent saving ? likely to be a few hundred dollars ? to the taxi drivers.

Those taxi owners who have already fitted the equipment can expect a retrospective discount, according to the Minister.

He said: "I expect that duty concession will be to the actual importers of the equipment because the operators don't import that items.

"But we would insist that those who have received the duty concession will pass it down to the consumer, so they will work that out. When they get their concession impact they will share it with those who have bought and those who will buy. The good news is that today over 350 taxis in Bermuda are now outfitted with GPS."

Michael Ray, of BTA (Dispatching) Ltd, said: "When I heard the news I said 'Praise The Lord'. We had made a request to the Finance Ministry and I'm very happy that they have listened. It should save taxi owners a few hundred dollars. On behalf of the taxi industry I want to say thank you to the Finance Minister and the Tourism Minister."

Also announced in the Budget was the introduction of a new category of luxury taxi being created to cater for a growing demand for limousine-style rides on the Island, both by businessmen and women and by tourists.

Finance Minister Paula Cox said: "A formal limousine category will provide luxury transportation services too meet the needs of both visitors and locals. The vehicles in this category would have the same dimensions as taxis, be well appointed and only black in colour."

She added: "An informal survey of the local hospitality industry revealed a high level of support for this proposal."