News Release: HAMILTON, Bermuda – There is a headline and a story in the printed version in Monday’s (Jan 11) daily newspaper which states that there will be a specific tax, a “tax on rental income” introduced in the 2022/23 budget. That statement is wholly inaccurate. For the avoidance of doubt, there have been no discussions regarding the imposition of a tax related to rental income, let alone any decisions made in that effect. It is important that the public know that the headline and introduction to the story are not accurate.
The news organisation responsible for the story has already edited the incorrect story online, and they have indicated that they will issue a correction in today’s printed edition.
Discussions regarding taxation are always difficult ones. The view of the Government is that we need to ensure that our tax system is more fair, guided by the values that those who can afford to pay more should pay more; and those at lower economic levels should pay less. We believe in building a fairer and more equitable Bermuda. It makes no sense that a working Bermudian pays taxes on all of their earnings from working and a wealthy property owner, who owns dozens of properties pays nothing on income earned by those properties.
Bermuda cannot continue to hide its head in the sand regarding the gross unfairness in our existing tax system. We are committed to the values of ensuring that our system of taxation is fairer and works better for our workers, and provides even more relief to those persons who need it most by reducing payroll taxes.
In our 2020 election manifesto, we promised the voters a wholesale review of the Tax System of Bermuda in light of the economic impact of the coronavirus. This will be advanced by a revised Tax Reform Commission that was approved by the House of Assembly in December 2020.
The values of fairness and equity, providing relief to workers, and ensuring those who can afford to pay more do pay more, will be the values represented by the appointments to the revised Tax Reform Commission.
- Editor admits error and has changed story online and will issue a correction in today’s printed edition