Taxi drivers will pick up an estimated $490 tax relief each after legislation passed through the House of Assembly on Wednesday.

Finance Minister Paula Cox told MPs the Payroll Tax (Taxi Services Special Exemption) Act, which gives rebate from January to March this year, is designed to help drivers in their most difficult period.

Reacting yesterday, Radio Cabs CEO Eddie Darrell said taxi drivers won't be saying no to the offer — but believes they need assistance all the year round, not just for three months.

"Anything that somebody gives you, you'd be stupid not to take it," he told The Royal Gazette.

"But all year is off season so this should be put there all the while. They make it back in gas from the taxi drivers anyway.

"If they give hotels an extension, they give it to them forever."

Ms Cox said the legislation — announced in her Budget last month — came after the taxi industry said it had been squeezed financially by low visitor numbers and rising fuel prices.

"In particular, the representatives indicated that the payroll tax payment in January-March tax period was the most difficult period to make, given the reduced level of trade that occurs in the immediate aftermath of the Christmas/New Year's holiday period," she said.

The act was passed with support from both sides of the House, with Shadow Finance Minister Bob Richards quoting Sam Cooke: "It's been a long time coming."

Mr. Richards continued: "We have been hearing about the plight of taxi drivers for years. This relief is temporary; the only permanent solution to this problem is to get more tourists to Bermuda."