Minister: No Residential Rental Tax In Budget
[Updated] Finance Minister Curtis Dickinson has reportedly announced that the proposed residential rental tax that was in the pre-budget report will not be included in the 2019/20 budget.
This follows after Government’s statement released earlier today which said that a number of people have contacted Consumer Affairs about the proposed tax, with the Government noting that, “The rental tax was only a proposal that was being considered as part of the pre-Budget consultation process. The Government has not announced a decision on this yet and will not do so until the Budget is read on February 22.”
“The proposed rental tax was simply a recommendation of the Tax Commission that was added to the Pre-Budget Report, along with other tax proposals. It was included in order to extract public feedback, which we have been pleased to receive. It should be stressed that no decision has been made by the Government to implement it at this time.”
This afternoon, Age Concern — which had previously expressed concern about the proposed tax’s impact on seniors — tweeted that the Minister announced on the radio that the residential tax proposal is ‘off the table.’
They tweeted, “Congratulations to Finance Minister The Hon. Curtis Dickinson who stated on Magic 102.7 Sherry J show ‘Rental Tax……… off the table.’ UPDATE: Residential Tax Proposal.”
In response to our queries, a Ministry of Finance spokesperson confirmed that the “Minister did announce that the proposed residential rental tax that was in the pre-budget report, would not be included in the 2019/20 budget,” and indicated they will be releasing a full statement on the matter.
We will update with their statement as able.
Update 5.40pm: Minister Dickinson has now released a statement, which says: “We carefully evaluated all of the items that were proposed in the pre-budget report and assessed their potential yields, ease of implementation and collection, and impact on the economy.
“In the context of the broader national budget that will be delivered on 22 February, we will be able to meet our budget objectives without having to introduce a residential rental tax.
“We are very grateful for all of the feedback we received through the consultation process and would like to thank all of the various groups, organizations and individuals who chose to participate. We valued your input and took it into consideration.”
Update 6.43pm: Shadow Finance Minister Nick Kempe said, “It was clear that there was widespread opposition to the residential rental tax which was causing anxiety amongst our elderly population, in particular.
“I would ask: was there any consultation about this in the first place? If there had been, the scale of the opposition would have been clear, and the Premier should have provided political guidance to the Tax Reform Committee.
“Although the tax was amongst a raft of new taxes being considered, Government intended to raise taxes by $50m in 2019/20 and residential rental taxes were set to raise $26m.
“So, given that 2018/19 still had a Budget deficit of $89m and given that Government has not cut any costs, what tax will replace the rental tax after this about-face?
“Don’t be fooled. This Government has already introduced new taxes and it is clear its only plan is to introduce more.
“It has listened to one section of our population, the elderly, will it listen to the rest who have been, or who will be, affected? We will see on February 22.“
So where is the money needed going to come from? I have an alternate plan that is instead of raising the government income we cut costs. We spend too much so let’s shrink the civil service, cut back on travel, freeze expenditure on new cars and trucks etc.etc. These are tough decisions but 25-11.
Legalize it and tax it, sure we will make more then de $45 Million a year for 30 years that de OBA gave away to Canada.
I agree with that one.
Heck, might be able to start getting that profit commission earlier than we thought on the new airport if we get an increase in tourism off the back of it too. You Pee El Pee diehards always forget to mention the profit commission part of de agreement?!?! Titty milk got you messed up again!! Hahahaha!!!
If you legalize it then the price drops dramatically and people grow their own leaving the tax man stumped again. If OBA had suggested such a tax they would have been labeled as wicked and nasty. The problem still remains that government has to cut costs if it cannot raise revenue so guess what the easiest way to cut costs is….trim the fat. Seniors don’t like tax but guess what seniors – nobody likes tax! If you voted solid plp for the last twenty years you only have yourself to thank.
Where are you going find the new OBAUBPERrr leader from or we going to continue pretending like Craig Trump is smarter then you Micheal Dunkely. Just to try and win votes. LOLOLOLOLOLOLOLOLOLOLOLOLO Come Correct.
Bermuda Public 1 plp 0 the plp know how to play political football now they are the great ones …..now guess what they still need to find that same amount of projected revenue from somewhere cause we sure know they won’t cut any expenses so who is their next target….my guess import duties will go up then its not seen as aiming at any one segment …we will all pay it …the sad thing is it has to come from somewhere and they don’t have a clue on expanding our economy just kicking the perverbial can down the street
good luck you voted them in I didn’t
You object the idea from the Tax Commission and you object the PLP for listening to my PEOPLE…. shut up mon.
Most voters object to Craig Trump being your leader, hmmm now go use that little brain to discover why. Micheal Dunkely can run circles around him and that’s the truth. Bless up.
Are really likening a black man to trump? You must be desperate
You can shoot the messenger. Spin the reality. Look at the abysmal performance of the Gvt, and overlook the fact that they don’t have a clue about how to solve the economic mess they created. Heck look are furberts oped piece. Sad. Misinformed and just amateur at best.
The fact is Rasta, we are in trouble. The blame game or shoot the messenger or shift the blame or spin spin spin won’t fix this.
Adults in the room will.
Blessings abound my brethren.
Now’s the time for the Minister to show he is really in control and cares for Bermuda’s future. Reduce Government spending by the same amount he had expected to raise from the rent tax. It’s easily done. In fact he can do it at a stroke of his pen.
…and a call to Chris Furbert and the other guy. Welcome to politics Mr. Minister.
25-11. He could do it any time he wanted.
84% of people are against paying new taxes.
It was the same people that voted the old boys association (OBA) out hahah
Any idiot can spend other people’s money.
#bitcoin.
All those fake proposals in the plat form that still haven’t come to light will never now.
Job increases, none
Balanced budget by 2019, none.
Air travel miles, through the roof.
Just putting it out there, going to be interesting to see what contractor gets the contract,( well on the local side anway) for the new bridges.. if we can afford it.
Getting the popcorn ready.
There will be no new bridges, unless we get pro-active about it…..haha!
I’m eating popcorn and thinking about which new surrogate will be the next obaUBP leader. Hahahahhahahahhahahahah
That is a little off topic.
Ok so who will get it now? It is like playing financial russian roulette
This tax would have been the last straw for most people
Tacky that the Minister of Finance goes to a talk show with such an important piece of information
Lmao its fitting actually. Those are the only people who listen. How u think they won? U can tell when they comment in here too…..
Eh? What? He announced this on a radio programme??????
Ok fair enough but ….. where will that $26m come from? Who is the next target?
Let us start cutting some government costs like the deadwood in cabinet
PLP failures
Trim the civil service now
It was announced on radio so it must be true. Had a good laugh as I walked into the room just as it was announced. Then announced again & again & again & again & again & again then I turned the radio off.
He had to keep on repeating it because GREEDY landlords had started to increase their rents.
Greedy landlords? Please define greedy landlords. I doubt that the greedy landlords are those renting to expats. That leaves who? No wonder the tax was repealed.
I’m not really sure by your comment if you do or do not believe that greedy landlords exist but let me relate what I know .
A local landlord who inherited over 20 properties (some very stately , some more modest) and many acres of undeveloped property all paid for many decades ago.
This landlord does a good job of taking care of their properties , nearly all of which would make nice family homes for locals who would have to rent first and build some savings to get their foot on the real estate ladder later on . Instead of giving locals a chance this landlord jacks the rent up to astronomical levels on their properties and advertises them as to scare away locals and appeal to foreign executive types who get hefty rental subsidies. In most instances these properties could house families of 5 to 8 people but instead the landlord has a single couple living in them . Big rent collected with minimal wear and tear on the house !
Greedy ? You tell me .
Unfortunately (I’m a realist) the flip side is that over the years the landlord has had so many horror stories with locals , you know them I’m sure , damages , unreasonable demands , dirty , noisy people and non payment of rent after a few months that they feel justified in their stance.
You can call landlords whatever you like O.J. but if a tax is ever applied most will pass on all or part of that tax that to tenants and there is nothing the Minister can do about it. But not to worry, overall rents will likely continue to fall right along with income.
This will end in one of two ways. Either taxes are increased which will eat into the pay packets/salaries of Bermudians still further, or Government will be forced to bring in more “foreigners”.
Either way, the PLP have backed themselves into a corner.
Curtis knew that the landlords would pass the increase on to the tenants. Now he is back tracking to say that would not be fair on the tenants. Well duh Curtis. Why don’t you tell us how government is going to cut back or cut your civil service. When you do that then the people will appreciate your efforts. Taxing the people To pay down the debt is WRONG we did not run the country into this mess you politicians did. So you politicians pay it back.
The news bridges should have been included in the airport deal
What have the bridges to do with an airfield terminal?
Its the PLP’s fault. Its the OBA’s fault. Its all our faults. How such a small Island can be so bitterly divided. Wake up everyone. Read the published reports on, Tourists numbers, people in jobs tax revenues, looks somewhat good. No. In actual fact less full time jobs. More 3-6 month contracts. More work permit declines, resulting in less local expenditure. Now go look at official records submitted and recorded at Government. Forget politics. Put your agendas as disagreements aside. This Island is sinking why? Figure that you will survive.
A deficit created …uncreate it.
We are over taxed in two departments as are obvious right off the top…transport (buses ,budgetted and paid for operating at full capacity).
Same for trash…same budget as before (allotted), but running at fifty percent (50%) of capacity ….so there you have it …taxed for more than you receive.
So now it has been said “our behaviour”…..(us and them!)….our behaviour passing on the tax to the renter is somehow a terrible thing…..no point in renting if your not above cost ….so prudent business dictated “such” behaviours…..cause and effect.
Let’s get this straight now…let me see if I have this understood properly….you want to tax a rental you cannot get to and from due to buses not running via cancellations thereof.
Then …you reduce trash pick up by 50% of that same rental unit…island wide.
You have a nerve taxing it at all!
Then you speak of our behaviour…
I’ll tell you what you can due…do….but I am fairly certain they won’t print my suggestion…
Just legalise marijuanna and tax it…you will be running at high surplus….
That should do it. They will be too mellow to care how high the weed tax is.
Take 100 dollars ,buy ten items at a grocery store…show me your change.
You want money …from my groceries?
Are you dopey?…or are you dopey?
Which one is it?
Dat’s grocery money boooooooooooyyyyyyy…