Full Document & Extracts: 2020 Budget Speech

February 21, 2020 | 1 Comment

This morning [Feb 21], Minister of Finance Curtis Dickinson delivered the 2020 Budget in the House of Assembly, which details Government’s financial plans for the upcoming fiscal year. A copy of the full Budget statement is below along with some extracts, and you can view our live blog on the Budget here and all our coverage of the 2020 Budget here.

60/40 Rule Change

In this budget session we will introduce a bill that will reduce the required ownership of a local company from 60% Bermudian to 40% Bermudian, while maintaining the requirement for the Board of Directors to be at least 60% Bermudian.

Mortgage Guarantee Programme 

Over the coming months, the Government will work,in earnest, with the local banking partner to deliver a mortgage guarantee programme that will be designed to deliver lower financing costs to middle class families seeking to secure mortgages of $750,000 or less


Payroll Tax

In this year’s budget, there are no proposals for any new taxes. Instead the Government will make a series of selective tax cuts aimed at reducing payroll taxes for those persons earning less than $96,000 bringing the rate paid in the $0 – $48,000 band of gross taxable compensation to its lowest level ever. The objective of this initiative is toput money into the pockets of approximately 75% of the employees in Bermuda. The cost of this tax relief will be partially offset by modest increases in the employee portion of the payroll tax for those earning more than $96,000.

Car Licence

For the first time in 24 years I am happy to let the people of Bermuda know that the Government will not be asking you to pay more to license your car

Cruise Ship Passenger Tax

Following last year’s notification to all cruise lines, the Ministry of Tourism and Transport proposes to redefine the “Large Ship Infrastructure Tax” as the “Transport Infrastructure Tax”. Additionally, the tax rate will be increased from $22.00 to $25.00 per passenger over the age of two. The new rate will take effect from 1 May 2020 for all cruise ships that berth in Dockyard between 1 April and 31 October, regardless of size or passenger count. The increase in revenue yield from this change is estimated at $4.4 million

Increase in Immigration Fees

After considering the Tax Reform Commission’s recommendation to increase the yield from immigration fees, the Government will increase all immigration fees by 5.0% to ensure there is reasonable cost recovery for the provision of the various services offered by the Department of Immigration.

Sugar Tax

The broad application of the Sugar Tax through the customs tariff has led to some items containing “relatively small” amounts of sugar being taxed. For example, items like Sugar Free Coffee Mate have been caught by the tax when they were not the intended target. During this session, we will introduce amendments to the Sugar Tax to allow greater discretion for customs officers to waive Sugar Tax duties for items containing “relatively small” amounts of sugar

BTA Grant

The 2020/21 grant to the BTA of $22.5 million has been maintained at the same level as 2019/20. However, as note earlier, the pending restructuring of the BTA may cause some of this grant to be redirected as a result of the restructuring.

Transitional Living Regime For Young People

In the 2020/21 year, a transitional living regime for children who are too old for the care of Child and Family Services will be established. At the age of 18, children in care, most of whom have spent the majority of their childhood receiving services from the Department, shift from being dependent on support from the Department to depending on themselves. Many are not ready for the transition to adulthood.

A transitional living facility will offer both a residential programme and a community based programme, which will be aligned. The residential programme will ensure housing stability, while the community-based programme will provide case management support, guidance, and connection to educational, vocational, mental health services and life skills coaching.

Training Programme For Solar Installers

To move towards solar energy and provide opportunity for Bermudians, the Department of Energy will be establishing a training programme for solar installers.

The full Budget Speech is below [PDF here]:

click here Bermuda 2020 budget

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  1. Joe Bloggs says:

    “The cost of this tax relief will be partially offset by modest increases in the employee portion of the payroll tax for those earning more than $96,000.”

    Take from the middle class and give to the poor.

    “redefine the “Large Ship Infrastructure Tax” as the “Transport Infrastructure Tax”. Additionally, the tax rate will be increased from $22.00 to $25.00 per passenger over the age of two. The new rate will take effect from 1 May 2020 for all cruise ships that berth in Dockyard between 1 April and 31 October, regardless of size or passenger count.”

    Tax the tourists who already find Bermuda very expensive.

    “The 2020/21 grant to the BTA of $22.5 million has been maintained at the same level as 2019/20. However, as note earlier, the pending restructuring of the BTA may cause some of this grant to be redirected as a result of the restructuring.”

    And the taking back political control of tourism is still on the cards.

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