Budget 2023-2024

Budget Statement In support of the Estimates of Revenue and Expenditure 2023 - 2024 presented by the Hon. E. David Burt, JP, MP Premier and Minister of Finance

Delivered on: 17 February 2023

A summary of the key announcements:

Economic Recovery continued in 2022

Bermuda’s Economy is Growing

  • 3.4% – 3.9% GDP growth projected in 2022

Growth in Employment

  • 402 New Jobs Created

International Business is Expanding

  • 230 new jobs in 2022 (119 new positions filled by Bermudians)
  • 812 new companies formed in 2022
  • 2021 saw strongest IB growth in 15 years
  • 591 IB jobs created since 2019

Tourism is Rebounding

  • Air Visitor Spending doubled in 2022
  • Record cruise season in 2023
Payroll Taxes to be reduced for 86% of workers and 86% of Businesses

Business Taxes

  • No businesses will see their taxes increase this year
  • Businesses will see their payroll tax liability reduced by as much as 43%
  • Self employed farmers fishermen will be exempt from employer payroll taxes
  • Employers will be exempt from paying payroll tax to employees on maternity/paternity leave

Employee Taxes

  • Workers making less than $132,000 annually will pay less payroll tax than last year
  • Since 2017, workers earning $48,000 have paid a combined $6,960 less in payroll tax
Completion of Morgan’s Point
  • Cabinet has approved site to be converted with 101 residential units planned for phase 1.
  • Residential units will range from entry level to high end, with seniors housing to be added in phase 2
  • Redevelopment centered around an amenity village with restaurants retail
Path to a Balanced Budget
  • Current year revenue up 7.2% - Achieved with no tax increases & relief in customs duty for essential goods and fuel duty to freeze fuel prices.
  • Deficit projected to fall to $43 million this year, and still on path for a balanced budget next year
  • $50 million of debt to be repaid this year, the first debt repayment in 9 years causing interest costs to fall by $2.4 Million.
Highest Capital Expenditure in 13 years to repair infrastructure
  • Increased funds to repave roads
  • $5.5 million allocated to renovate and equip 2 new parish primary schools: Francis Patton and Purvis Primary
  • New health clinic to open in Somerset
  • Additional affordable housing to be constructed
  • 40 electric buses, refit of fast ferries
  • New vehicles for fire, police and corrections
New Investments to improve quality of life
  • Social insurance benefits will increase by the rate of inflation this year
  • Additional funds for the Hospital
  • Increased child daycare allowances for parents
  • Transitional living for young persons ageing out of care
  • Increased funding for care homes
  • Reintroduction of public health scholarships
  • Air-quality monitoring for those affected by BELCO emissions
  • Expanding social protections for families via financial assistance
Changes to Taxes and Fees

Land Tax Changes

  • Land tax to increase on properties with ARV higher than $90,000, which affects 4% of properties in Bermuda

Some Exisitng Fees to increase

  • Increase by 5%: Stamp duty, Trademark fees, Fines, Solid waste dumping fees, Planning fees, Shipping fees, Work Permit & PRC fees
  • Increase in court fees

New Fees

  • Vacation Rental Registration fee
  • Regulatory fee for companies
  • A fee for complex PATI requests 
Customs Duty Changes
  • Sugar Tax Reform: Items that may have a small amount of added sugar such as: Nutritional bars, low-sugar drinks, Non-dairy creamers will be reduced.
  • Personal care Fitness companies to be exempt from customs duty for upgrades to their business
  • Elimination of duty for school uniforms import of aggregate
Improving Tax Collection
  • New restrictions on businesses, individuals and landowners who are not current with their tax obligations or their tax payment plans.
  • These restrictions can include denial of contracts, grants, permits, licences or other government authorisations.
Mortgage Guarantee Programme - Phase 2
  • More Bermudians able to take advantage of lower interest rates
  • Age restriction removed - Open to any Bermudian purchasing a first home
  • Public Officers will be eligible to transfer their mortgage