The Premier has announced that the Government anticipates gathering enough revenue in the upcoming financial year to implement a series of tax breaks totaling $45 million.
During his presentation of a pre-Budget report in the House of Assembly, David Burt outlined plans to reduce energy taxes, eliminate customs duties on building supplies, decrease private car licensing fees, and cut land tax rates.
The report indicates that government revenue for the 2025-26 financial year is expected to remain stable at approximately $1.26 billion, even after accounting for the proposed tax breaks.
An anticipated injection of $187.5 million from the upcoming corporate income tax will allow the Government to increase spending by over $100 million in this financial year while still achieving a budget surplus of around $84 million, earmarked for debt repayment.
Of the $100 million increase in spending, $50 million is allocated for the introduction of a universal healthcare system, $30 million for salary raises within the Civil Service, and $26 million for capital projects.
Highlighting key aspects of the 20-page report, Mr. Burt expressed optimism that 2025 would be “a transformative year.”
He stated, “With the initial revenue from the corporate income tax, we will not only provide relief but also make strategic investments to ensure long-term prosperity and set Bermuda on a path to repaying its national debt.”
The launch of universal healthcare, he explained, would enhance hospital services and improve access to preventive care and specialist consultations.
He justified the additional funding for public worker salaries as necessary to keep public sector compensation competitive with the private sector.
The Premier noted that increased funding for capital projects would expedite road resurfacing following the new asphalt plant’s installation.
Upcoming capital projects include replacing the Swing Bridge, expanding affordable housing, constructing a seniors’ day care center, and building a new agricultural service center.
Mr. Burt pointed out that the island faces a $605 million payment on its $3.2 billion debt due by January 2027, with the corporate tax revenue helping to cover this.
He stated, “The projected Budget surplus of $84 million for FY 2025-26, while significantly higher than expected, is essential for building reserves in the Sinking Fund to reduce Bermuda’s debt.”
“While we plan to invest in lowering healthcare costs for residents and businesses and boosting capital spending, we must ensure the $605 million debt due in 2027 can be repaid in full without needing to refinance at potentially higher interest rates.”
Mr. Burt reiterated his strong belief that 2025 will be a pivotal year for Bermuda.
He emphasized that the initial revenue from the corporate income tax would support “strategic investments for long-term prosperity” and “lay the groundwork for a stronger, more resilient Bermuda.”
He added, “These measures are fundamentally fair, addressing key areas that impact the lives of every Bermudian—energy, housing, transportation, and connectivity.”
“Each initiative demonstrates this government’s commitment to understanding the real challenges our citizens face and our determination to provide meaningful relief to taxpayers.”
“This pre-Budget report outlines ambitious initiatives aimed at alleviating financial burdens, investing in essential infrastructure, and enhancing healthcare access, all while maintaining fiscal prudence.”
“It is a strategy designed to fulfill the government’s mission of building a fairer Bermuda for all.”
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