Chamber of Commerce On The CARTAC Report

October 12, 2017 | 8 Comments

Following their review of the CARTAC report, the Chamber of Commerce said they are supportive of increasing Bermuda’s tax base by having more companies and individuals attracted to Bermuda, strengthening enforcement of tax collection, and said they feel “higher tax rates for those earning higher salaries is fair and equitable.”

The CARTAC report — “Reforming the Bermuda Tax system and Its Administration for Fiscal Consolidation” – was tabled in the the House of Assembly on Friday, with Premier David Burt saying the Government tabled it “so that Parliamentarians and members of the community can be made aware of the recommendations.”

Chamber President John Wight said, “Discussion, collaboration, and action around tax reform are critical for Bermuda. Tax reform should be viewed alongside Bermuda’s declining birth rate, immigration reform, and other important issues that impact Bermuda’s financial objectives of balancing the country’s budget and repaying its debt. Fiscal responsibility is paramount.

“Features of tax reform that the Chamber supports promote transparency, fairness and simplicity. While the Chamber has been asked to comment on the CARTAC report, we believe this report is only one of many tools that Government can and should be using in the consideration of tax reform.

“For example, the Chamber has been publicly supportive of initiatives that increase Bermuda’s tax base by having more companies and individuals attracted to Bermuda, thus paying taxes and reducing the burden on existing companies and individuals. We were pleased to hear, in the Throne Speech, of Government’s stated desire to achieve economic growth by creating new jobs for more people to work and live in Bermuda.

“Progressive taxation, as evidenced by the change in payroll tax rates that came into effect on April 1, 2017, is supported by the Chamber. With socioeconomic disparity becoming an increasing problem across the Western world, the Chamber believes that a model promoting higher tax rates for those earning higher salaries is fair and equitable.

“In our analysis of the CARTAC report, we would like to highlight one area: the Chamber is very supportive of strengthening enforcement of tax collection. Before we look at creating new ways to tax our residents, a better job needs to be done to collect existing arrears.

“The report states that at the end of the 2014-2015 year, arrears totaled $197 million, of which $146 million represented payroll tax alone. More than 90% of this balance is older than 12 months. Collection has to improve.

“Ultimately, Government should be applauded for its transparency in distributing the CARTAC report to the public. It is only through fact-based discussion amongst Bermuda’s stakeholders that the best decisions on important topics such as Tax Reform can be made for the Island.”

The CARTAC Report follows below [PDF here]:

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Comments (8)

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  1. De ubp/oba union, for those of you that hate unions.

    • jt says:

      Glad you support the Chamber OJ.

    • Bermudian Patriot says:

      Mr Juice, please explain, I’m lost as to what you mean?

      • De Chamber of Commerce is a registered organized union, for all you union haters.

        • therock says:

          no, moron..it’s a trade organization…there is a difference, but you’re too stupid to comprehend that.

          • So you use trade and organization to negate union?
            Thats like brewing hops and barley and not calling it beer.
            LMFAO

            • therock says:

              OJ, I realise there are many words you don’t understand.
              But, honestly, you make yourself look stupid so often, I wonder if you’re really just a troll, paid by the OBA, to make the PLP supporters look worse than they already are.

        • FYI says:

          The Bermuda Employers Council is a registered Union and negotiates as such under the Labour Relations Act. The Chamber of Commerce is not.

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