Premier’s Final Town Hall Tonight
Premier Paula Cox will host the third, and final, of a series of Town Hall meetings to discuss the upcoming National Budget tonight [Feb.1] at the Francis Patton School in Hamilton Parish starting at 7.30pm.
Premier Cox will be joined by Deputy Premier and Minister of Transport Derrick Burgess, Minister of Education Dame Jennifer Smith, Minister of Business Development and Tourism Wayne Furbert, and Minister of Environment, Planning and Infrastructure Strategy Marc Bean.
The first Town Hall was held on January 18th in Southampton. The Premier was joined by Attorney General & Minister of Justice Kim Wilson, Minister of Health Zane Desilva, and Minister of Youth, Families, & Sports Glenn Blakeney. Videos can be viewed here.
The second was held on January 25th in Hamilton, with the Premier joined on the panel by Minister of Economy, Trade & Industry Patrice Minors, Minister of National Security Wayne Perinchief, Minister of Government Estates & Information Services Michael Scott, and Minister of Public Works Michael Weeks. Videos can be viewed here.
Premier Cox released the Pre-Budget Report recently, which highlights a number of policy options currently under consideration and the town hall meetings ate designed to solicit public feedback on the document.
The Policy Options from the Pre-Budget Report follow below::
The following are considerations for inclusion in next year’s budget. One of the main objectives of a Pre-Budget Report is to provide a document that elicits discussion from stakeholders. Prior to finalising the budget, the Government will hold public forums and meetings with stakeholders and discuss the ideas outlined below.
Harmonising Duty for Personal Imports
There are different rates of duty that are assessed to individuals who import items for personal use. At the airport the rate is 35% however via other methods of import, the rates vary from 5% to 33.5%. Because of the inconsistent duty rates across methods of import, Government efforts to support local business are not as effective as intended. Therefore the Government will examine changes to duty rates for personal imports.
Changes that harmonise rates must be done in a way to ensure that those who import goods for business use or for resale do not face additional requirements and additional “red tape”. The Government continues to remain committed to supporting local retail and is looking at a way to ensure that the correct balance is struck.
Possible Changes to the Betting Tax
The current betting tax rate of 18% is very high compared to other countries. Government is considering a reduction of this tax as it may stimulate more betting transactions being based in Bermuda.
Increases in Sin Taxes
When finances are tight, there is a regular clamour by the public for increased taxes on “sin” items such as alcohol and tobacco. The Government is considering raising these taxes but is mindful of the effect that increased alcohol prices may have on our tourism industry and nightlife.
Biennial Fee Increase
The biennial fee increase is scheduled to take effect this year. Additionally the Government is looking at changing its fee structures to reduce the annual cost of ownership for fuel efficient vehicles. It is thought that changing the basis of the annual vehicle licence from the dimensions of the vehicles to the fuel efficiency of the vehicle will promote purchases of energy efficient vehicles. This change is planned to be revenue neutral. However, to prevent vehicle owners from seeing a sudden rise in licensing cost, this change is to be phased in over a period of years.
Rollback of Tax Expenditures
Tax expenditures assess the costs, in terms of forgone revenue, of various tax provisions that provide tax breaks for certain taxpayers and activities. Over the last few years, the Government has put into place a number of tax expenditures. Some have been as a result of Government looking to assist business during the recession. Others were put in place to meet certain social policy objectives.
The following are a number of tax expenditures which will be reviewed for the 2012-2013 budget.
Hotels & Restaurants
In 2009, the Government put in place a Memorandum of Understanding for the hotel sector for payroll tax relief. In 2010, payroll tax relief was extended to the restaurant sector. This MOU has provided a reduced rate of payroll tax for these industries. Over the duration of this concession, the Government has in effect spent $20.4 million dollars on these tax expenditures. These concessions were never meant to be permanent and the Government will look to reduce them over the near term.
Pensioner’s Land Tax Exemption
In 2005 the Government exempted all pensioners from Land Tax. Prior to this change, homes owned by pensioners with an ARV of less than $40,000 were exempt from land tax. It is not envisioned that the Government would look to remove this exemption in its entirety; however, the Government will examine ways to continue to provide this relief to a vast majority of pensioners while reducing this annual tax expenditure of $6 million.
Senior Vehicle Licence
In 2007, the Government put into place a policy whereby seniors who owned a vehicle did not have to pay to licence their vehicle. This blanket tax expenditure, while popular, has been very open to abuse. Since this exemption came into force there has been a 26% increase in vehicles licensed to seniors and a 358% increase in class H vehicles owned by those 65 and above. This tax expenditure has cost the Government $17 million since its inception. The Government will examine this tax expenditure with a view to putting into place a provision that assists seniors in need and is less open to abuse.
Land Taxes
The Government is considering implementing a recommendation from the 1999 Report of the Bermuda Tax System to tax vacant land. There are pros and cons to this recommendation. Such a tax, if implemented, would provide more revenue to the Consolidated Fund, which can be used to fund national priorities. However, taxing vacant land could also spur owners to develop vacant land which while increasing economic activity would reduce undeveloped land. There is also the question as to whether all vacant land, or only vacant land zoned residential should be taxable.
Creating a Local Debt Market
Although the Government continually enjoys excellent access to international markets, the Government is considering financing most of its future borrowing requirements locally, in Bermuda dollars. It is anticipated that this choice would lead to more economic activity on the island, and may spur local capital markets. When these financial instruments are issued, they will provide the ability for savers to diversify their Bermuda dollar holdings and will offer another option for savers which may provide attractive saving rates.
The Government emphasises that the policy options listed above are for discussion purposes and that no decisions on any of the above for the 2012-13 budget have been made. During the month of January, the Government will hold public meetings on the above policy options to encourage public debate and discussion on the priorities for the 2012-2013 budget. The Government welcomes feedback on this report as we look to involve as many as possible in the Open Budget Process.
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An open letter to our premier….
Dear Ms Cog.. Bermuda has failed under the PLP government and particularly under your leadership. The people of Bermuda are tired of the lies, and unscrupulous behavior. Your core base of supporters are begiinning to see the light and support for the party is dwindling. It is time the PLP recognize these are and realize the people of Bermuda are being embarrassed on a daily basis by the flip flopping and errors this government has made. I call on you for the sake and financial security of Bermuda to have the PLP to P lease L eave P olitics to people who know what their doing! PLP all the way!
Signed… The people of Bermuda.
An Open Letter to our Premier
Dear Mrs. Cog,
PLEASE, PLEASE, PLEASE and OH PLEASE AGAIN – pay attention to Cancer’s OPEN LETTER.
No need to reserve parking.
I just wish the good lady would hurry up and call the election. This limbo period of not knowing who will be running the country for the next four or five years is causing real harm. Any investor contemplating bringing an International Business here or creating infrastructure such as hotels, casinos, shopping etc is not going to make any decision until after the choice of Bermuda’s people is made clear.
The Premier needs to resign…she has no power anymore…Derrick is running the Island and he has a lot of support with the likes Burch, Bean and Smith, and a few others .
A semi literate doorman, a racists, a thug and a bible thumper.
Bermuda has a depth of talent.
Have no fear. Once the votes are counted the PLP will reign surpreme.
The Lady has jokes… 14 scandal ridden years is more than enough. Time for change.
That’s an interesting choice of words LF. Very telling indeed.
Oh… do you plan to rig the ballot boxes, then, LaVerne?
Because, otherwise, I don’t see much chance in your worthless party being re-elected . Your ignorance astounds me.
Yes i agree with Lavern Furbert, the PLP will win again, i also vision Col. Burch being chosen as Premier by the lovely PLP committee within the next 3 years, Then the real PAYBACK will begin!!!!
I agree with your comments,it is so sad that we have the likes of Lavern and Derrick playing the race card… and to think that people pay attention to these idiots…
Col Burch, we have all had enough of your hatred…please give us a break enough is enough.
Ms.Furbert
Please use a dictionary or spell check your silly comments.
My 7 seven year old knows how to spell ” supreme”
I am actually embarassed for you,and hope you don’t have children or grandchildren reading your posts.
But no-one in the PLP can count.
I don’t think your so sure of that Laverne…
@LV: Seems to me that you’re gonna have to continue to deceive a lot of people in order to get in again. I have to hand it to you though, you’re at it every day. Pity that a PLP promise is about as solid as ice cream at Cup Match.
Reign supreme strongly implies a Monarchy. Could you please explain further as enquiring minds would like to know before the election, rather than after
I have to say that items suggested above by our Premier are drops in our Ocean of debt.
All I can say is, if they offering refreshments at the Town Hall meeting, pass on the Kool-Aid…
@ Clinton, the reason the plp will win is the same reason why it has won in since 1998. It has roots in the community and better candidates. Think about it, you are probably going to be an OBA candidate, do you really think voters would elect to put someone with your skillset or lack thereoff in power. You wouldn’t even vote for you. Anonymous posters have kept this cyber smoke screen of anti plp hate going since the PLP have been in power, it’s make them feel better, makes them feel like they have some semblence of power when they have none. But meanwhile in the real world, in people’s churches, living rooms, cars and pta meetings the voters still vote for the plp. during the last election the paper ran daily full page ads smearing the plp, all from anonymous organizations, the alleged BHC scandal was in the news daily, the son of the soil released his underwhelming deep throat document, whispers about dr. browns cedar beams abounded, the governor even got in the mix. What was the result in the end? None of it made a dent. as a matter of fact, the plp actually got a larger percentage of the popular vote than they had in the previous election. Then to top it all off, they gained 2 more opposition seats when wayne and darius crossed the aisle. this mysterious say at home plp ant vote never seems to materialize. But i’ll tell you what, cancer, cedar beams and all the posters who have been whining about the plp for years on the blogs, you guys can be king of bda’s cyber world, this where you live. Have at it. Those of us in the real world will continue register to vote and show up at the polls to vote for our plp mp. ahh, here’s my X next to dale butlers name, marc bean’s name, the lister brother’s name, randy horton’s name. You go ‘head and vote for ras mykal.
ditto
And the whole of Bermuda suffers because the people in their cars, churches and homes, but especially the churches, are idiots.
Choosing to vote for incompetents, racists, liars. Sad isn’t it.
Look at how much better Bermuda is today.
So, let me get this straight. You’d rather vote for someone that has certain skill sets and has used those skill sets and ruined a perfectly beautiful place as Bermuda rather than giving a new person or persons with different visions and ideas to try and fix what the QUALIFIED people screwed up? Too funny.
@trident if you really think PLP will win the next election after all these issues then good for you. The people of Bermuda are tired of this madness. This is the worse Bermuda has ever been. Do you really think the people of Bermuda are that stupid to want to continue this way. The PLP dont have a damm clue on how to fix the economy are looking to the OBA to fix what the PLP broke. Once again the people are tired of the hooking up your ace boy, ruining of intl business, flip-flopping policies. So don’t worry about Clinton he’ll hold his own at the election. Btw the hardest working person in the PLP is the UBP leader so I wouldn’t brag if I were you! This PLP government has nothing to be proud of as they have embarrassed this country at home and internationally. It’s not to same Bermuda under this PLP
@ cancer, bda has changed? You mean how america has changed, how greece has changed, how spain has changed, Ratings agencies constantly say that in spite of the dire world financial situation, bermuda is holding its own. no one but the ex ubp votes will vote for a party led by craig, bob and cole, the most disliked politicians on the island.no one is going to entrust the gas station man with running this island – seeing that he is really dunkleys puppet.
@real talk – it’s funny how people talk when they don’t know what their talking about. And obviously your one of them!