New Taxes Expected in 2019-2020 Budget on February 22

New taxes could be in the pipeline for the 2019-20 Budget, the Minister of Finance said yesterday.

February 22, 2019 is Budget Day and new taxes look set to take place according to Finance Minister Curtis Dickinson’s pre-Budget report, including homes rented to tourists or international business employees and a 5 percent tax on general services, with a 7.5 percent tax on professional services.

And the new Minister, who is set to deliver his first Budget is looking for public feedback on the proposed fiscal plan for 2019-2020.

Speaking at a news conference yesterday, he said: “This document will provide everyone with an opportunity to understand the focus on the next Budget and to allow us to hear from you, from the people of Bermuda, your thoughts and concerns.

“Our pre-Budget report explains the factors driving the Government’s fiscal policy decisions while giving everyone the opportunity to make their views known.

“We anticipate that this report will give the public a better understanding of our aims and objectives as well as encourage debate on the Budget strategy and how effectively it copes with current economic and social priorities.”

The Minister also noted that changes to Bermuda’s payroll tax system “to make it somewhat more progressive, botth at the company and individual level” were also in the pipeline.

Changes to the system of collecting stamp duty were also included in the report, with a view to making “reductions in duties on food and clothing, and increases in alcohol duties”.

It was also noted that the Tax Reform Commission’s report, tabled in the House in November predicted the proposed changes could boost revenue by $147 million over the next two to three years.

Mr Dickinson said that a series of meetings will be held with members of the international business community, the Chamber of Commerce, local businesses, union leaders and other stakeholders.

Members of the public can send their questions, comments and concerns to openbudget@gov.bm.

Phhotos Courtesy of DCI