Deloitte Release 2013/14 ‘Budget Snapshot’
Following the delivery of the 2013 Budget by Finance Minister Bob Richards this morning [Feb.22], Deloitte released a ‘Budget Snapshot’, which follows in full below:
Public Debt
- The statutory debt ceiling will be raised from $1.45 billion to $2.5 billion.
Payroll Taxes
- There will be a 2 year payroll tax holiday for new Bermudian hiring.
- Payroll tax concessions for the hotel, restaurant and retail sectors will be extended.
Licence Fees
- License fees for non-Bermudians will be reduced from 25% to 8% for purchasing Bermuda homes, from 18% to 6% for purchasing condominiums, and for Permanent Resident’s Certificate holders, license fees will be reduced to 4%.
Duty
- Duty on cigarettes, tobacco, beer, wines & other spirits will be increased.
Land tax
- There will be an increase in rates on ARV bands higher than $90,000.
Vehicle License Fees
- There will be an increase of 3% on all vehicles.
- There will be a continuation of exemption for vehicles for seniors in Classes A to D, revoking exemption for E to H.
Corporate Services Tax
- The Corporate Service Tax Rate will be raised from 4% to 6%.
Other
- Government will also formally commence negotiations with the relevant unions regarding reduction in staff compensation.
- There will be an increase in funding for police and prison services.
- Chart exchanged at 2.39pm
Geesh! I have a large car because of 3 children which are now all grown. Cant afford that. Dont need tht size any longer but car is now 13 yrs old. Wont sell in this market, um stuck. I’ll be on bus at end of licence period. Middle class and still cant afford to live on this island. When is there going to be a break. Anyone want to purchase a 13 yr old station wagon.
And why won’t it sell in this market?
the graph should read in thousands!
How could you increase the license fee and the roads are in poor poor condition. you should fix up the roads up first to at least give us a reason for the increase. We should ask for a decrease until you pave the roads to make driving better and safer. How about that.
Agree 100 percent!
Here’s a reason – we’re broke.
The tax break on license fees was a poorly thought out unnecessary giveaway to scare up votes in 2007 and ended up costing the government a fortune because it was so easily abused. You had that car for 13 years? So you paid a fee on it for the first seven years you owned it. You got six years free. The days of freebies are over, now you can pay up like the rest of us.
That was directed at Dawn and Patricia both.
Dawn, the money that should have been spent on roads over the past 14 years was wasted on travel, parties, kickbacks, badly built piers, and slummy new condos on South Shore that no one wants. Now we don’t have the money to repave the roads. Blame the idiot PLP.
Soooooo let’s lower the fees for foreigners licenses and stuff but let’s raises the fees for Bermudians while cutting pay? You’re joking right?
This is the government which you the people have voted for. Nice job (Not) time will let you all see that the OBA is all about looking after their own not us Bermudians. This is strike two I beleive in doing more for NON Bermudians.
If you place a 30% tax on something and the perception is that the price and / or tax is too high and nobody buys, you make $0. If you lower the amount to stimulate buying and selling and settle for a bit less you have the potential to make some $$$ Economics 101. Nobody minds paying their fair share, BUT nobody likes to be taken advantage of! Good job OBA.
Hmmm..not sure you understnad the intent.
Feeling like a Greek!
$2.5 billion – that is $62,500 in debt per Bermudian or $38,500 in debt per resident – Wow!
Increase the Tax on Cable TV; $50 per month Government Tax.
Put a $50/month Government Tax on cell phones.
The free stuff is finally going to have to get paid for.
Stevie Wonder saw this coming but not Alaska Hall – SHAMEFUL!
Alaska Hall never saw it coming because big D took care of their bill. He got burned early and moved on. Some of us waited around and eventually suffered serious life threatening injuries.
Reduction in staff compensation….. Are you frigging kidding me…. Can’t you people see how the cost of living continues to rise and you want us to take a pay cut
Yup…4-Day work week comin’ up!….maybe a side of early retirement with that to go…
Join the effin club mate. You civil servants are swanning around like nothings wrong. The rest of us have had less money for years.
What civil servant…. Am a blue collar worker….its always us the small man that has to feel the pain while the higher paid folks plod on happy as ever!
Fix the roads with money that could be used immediately else where and then increase the license fees or Increase the license fees to raise revenue that will eventually fix the roads…what came first, the chicken or the egg?
So the OBA wants government workers to pay for cuts for foreigners to buy our land and houses. Make perfect sense, said no one ever….
Cuts, and increases…staff compensation negotiations to decrease what people make. THIS IS THEIR ANSWER TO DECREASING DEBT? Working and middle class ADVERSELY affected…with breaks for foreigners, and the wealthy. Until the issue of price control is addressed in a system where those who make more pay more those with the lowest income will continue to suffer. The answer is not to almost double the debt ceiling which means more debt spending and more owed bY the people. The UBP/OBA complained about the debt constantly which was their main platform electioneering. Now they ARE giving themselves the leeway to nearly doubt it. WE KNEW THIS WAS COMING.Welcome to the real world of debt financing for the wealthy while the workers get poorer. Stay tuned.
Yes I know the PLP did it…but the OBA promised to change it!
If you are truly Renee Webb, and I doubt that you are, you should be ashamed and have real nerve commenting on anything political. You were part of the early problems that caused the PLP and Bermuda to divide this country. Nothing that you touched turned to Gold but instead rusted.
What do you consider your political gift to Bermuda. Gifting Coco Reef to JJ for a 99 year lease???
You took enough for the people of Bermuda RW , give us a chance at least.
The answer to reduce debt is to cut the civil service in half. Unfortunately that would make a lot more people suffer. Considering the PLP hired these people and new the consequeses is dispicable. of course PLP would not address cutting salaries because for them it is about retaining power not doing what is right. we are now stuck with the PLP/BIU shennaigans as any attemp to touch the civil service will cause an island wide strike. I applaud the OBA for doing the right thing and being honest about it.
I do not believe this RW as she would be respectful and not refer to the current govt as UBP/OBA.
Renee webb is an unnecessary expense. Fire her a#s.
Expect some pain Bermuda! We have to be prepared to all work together to put Bermuda back in the black. Great budget Mr Richards. I am 68 and don’t mind having to pay to license my car. The number of Seniors are increasing daily and we can’t expect Government to continue to give us licensing for free.
The license fees goes up almost every other year but yet the roads are getting worse. Why the revenue from previous increases over the years was not used to fix the roads. We just keep paying and paying and the roads get worse and worse that’s not right. I thought part of your license fees was to assist with the up keep of the roads. If that is the case we are not getting what we are paying for and yet you want more money from us. You should have deducted the non Bermudian license fee from 25 percent to 11 percent and that way you wouldn’t have had to increase the car license fees.
I say that we start fining the DUI drivers much higher $ amounts. They smash into walls, fences and gates every weekend!!!! These walls etc…were paid for by the people of Bermuda and are destroyed by these drunks and / or speeders. Every Monday I see another wall smashed and it rarely gets fixed unless by W&E (at our expense)/ If you hit it …you should f’n pay for it!