Shadow Finance Minister On New Oil & Gas Tax
“Hopefully this won’t hit those who can least afford it,” said Shadow Minister of Finance David Burt, reacting to the planned new tax on oil and gas.
The Government tabled a Bill in the House of Assembly on Friday [Sept 20] to raise funds to support St. George’s by levying an additional tax on oil and gas imports landed at the Oil Docks in St. George’s.
The Bill said:
WHEREAS it is expedient to provide for the establishment of the UNESCO World Heritage Fund for the purpose of maintaining, developing and promoting the UNESCO World Heritage site in the Town of St. George, and to impose a levy on gas and petroleum products landed at the Oil Docks in St. George’s Parish to be paid into the Fund…
The Corporation of St. George’s may collect a levy of 0.25 cents per litre on all petroleum oils and petroleum gases of Headings 27.09, 27.10 and 27.11 in the First Schedule to the Customs Tariff Act 1970 which are imported via the ship terminal at the Oil Docks, St. George’s.
Mr. Burt said, “We all know that the old town needs help and the PLP supports maintaining the historic jewel of the Town of St. George. But we hope that the Government has thought this new Tax hike through. It is likely that this new tax will be passed on to the consumer increasing the cost of living for hardworking families and small businesses at the worst possible time.
“We have to consider the knock-on effects of this plan. Not only will consumers face higher prices on their BELCO bills and to refuel their vehicles; but companies who will also see their costs rise are likely to increase the price of their goods and services. This can lead to an increase the price for food and essential services.
“We have learned that the Chamber of Commerce wasn’t consulted on the cruise ship gaming bill so we hope the same mistake hasn’t been made with this new tax. Rubis and Esso have hopefully been consulted and have been asked to hold off passing this new tax on to the consumer. If not, this planned new tax is the wrong way forward and we urge the OBA to reconsider,” concluded Mr Burt,
The full Bill that was tabled in the House is below [PDF here]:
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- Minister: Committed To Revitalizing St. George’s | Bernews.com | September 25, 2013
like we already have the most overpriced fuel in the world belco will put that on to our already high bill at the pump now is cost almost$100 to fill an e class car dam
Shut off your belco connection, sell your oversized car, buy some candles and a pedal bike, or just shut the f** up!
Obviously stupid thoughts which lead to stupid comments is your forte..however ur glimps of intelligence was the advise u should take urself..shut the * up!
Sorry PLP, it is too late to complain about the fairness of any new taxes or cost cutting actions going forward. It is inevitable that all people will have to bear the burden of the financial debt which was put upon our shoulders over the past years. It will impact everyone and yes, it will be unequally difficult for those that can least afford it especially those in the civil service who will likely face further cuts based on the SAGE presentation I saw recently. But there is no other choice now but to deal with the harsh reality that we have overspent and have been careless. There is no free lunch and unfortunately now that the lunch has been eaten, we, the people, have to deal with the indigestion for many years to come. If we don’t, the consequences will be far more severe than some discomfort.
Tax the people who live in St.Georges… Their the ones complaining no ship in the harbour.
and why is there no cruise ship in the harbour – ask E Brown
wrong. ask the dreamers in St. George’s. E. Brown warned them that ships were getting bigger and to get into the yacht business down there. Like you, they think they’re so damn special that cruise lines will make some ships just for them. well, surprise surprise…..St. George’s economic woes are their own doing and no matter what anyone says that’s the truth.
Yes. ‘Cuz there are no small cruise ships out there that want to come to Bermuda. None at all. They don’t exist any more.
RIIIIGHT.
I guess you wouldn’t blame Dr. Brown and the PLP for the decision to close and ultimately destroy a perfectly good St. Georges Golf Course as well. It provided work and income to many , was a source of leisure to more and a reason for many to visit St. George.
Wow! Plp is the worst opposition ever!“Hopefully this won’t hit those who can least afford it,” of course it will!
Higher electricity bills and gas hitting us at the same time? Thanks oba, fu plp.
Ahh no, that tittle goes to the UBP as well as the OBA because the PLP wouldn’t of been get away with as much as they did had either of the too made a decent opposition party.
MP Burt is correct. We will need several suggestions to support various Bermuda activities but we need more collaboration to ensure we consider the overall impact of the suggestions.
One recent example is the new parking rates in Hamilton (to include auxiliary bikes!!). While they may raise revenue for the Corporation, what will be the impact on customers who want to come to Hamilton to shop?? I for one will be in Hamilton less and I assume more businesses will want to relocate out of the city.
Amen to that vote for me! The OBA doesn’t care about the ordinary Bermudian
OBA has nothing to do with parking in Hamilton, that’s the Mayor et al
which also means parking at the parking lots will go up as well – I would catch the bus but the drivers not all but a lot of them are nasty as hell – driving past people at bus stops, tellign people they didn’t pay when they were seen paying, driving off before people are seated and the list goes on and the tone they use when they speak to tourists and seniors.
What the hell is the OBA thinking! Gas is expensive enough already!
You suggest they think in the first place??? Well you’re correct, they do but just not for the average Bermudian.
So when the PLP raised both payroll tax and foreign currency purchase tax in the middle of a recession it was to help the people?
Well, it helped thousands of people find a lot more free time as they no longer have jobs to go to.
With gas at about $2.10 per litre a new tax of $0.0025 per litre adds about 0.12% to the cost. Meh.
On a $100 tank of gas that comes out to $0.12. Twelve cents. If that fell out of your pocket, most people wouldn’t even bother to bend down to pick it up. Unless you needed it to pay for that massive increase in parking the CoH is implementing to pay for their Columbian parties.
A new Tax is a new Tax!
No matter how small or large, it is a new tax!
Where the hell are you getting your math? 100$ tank is approx 47 liters. 47 liters X 0.25 cents a liter is 11.90. I would bend down to pick that up for sure.
47 x $0.0025 = $0.12
Family Man probably got his math from a good school teacher. You however are multiplying 47 litres by 0.25 (which would indicate a 25 cent per litre tax and as the article stated it is a 0.25 cent per litre tax). You need to multiply 47 litres by 0.0025 to get to the actual extra dollars spent per tank of $100 fuel. As Family Man correctly stated, that equals about 12 cents more per $100 tank of gas.
I had to reread the tax amount to confirm also, but Family man is correct.
The tax is 0.25 cents/litre which is $0.0025 (dollars) / litre. So your 11.90 is actually 11.90 cents or $0.119 (dollars), which is $0.12 (12 cents), like Family man said.
@Hi
I think you might be mistaken. 47 Liters x 0.25 cents = 11.9 cents
A total of $100.119 Which would be rounded up at the pump to $100.12
every 4 Liters will cost an extra 1 cent. That works out to $1 extra every 400 Liters (Approximately $1 extra for every $850 of gas)
the oba bunch of dirty… no respect for no1 from the oba. And there supporters are stupid also. You see them doing wrong and still have faith. Its kool because ya goin… with them
And who gives a rat a** about st. Georges its the most boring place in bermuda . Your goin to raise price to fund st.georges ..**** st.georges gas price n belco bill raise n not a thing will be done to fix st.georges.. **** u cannonaire..seriouly..
methinks you need to consider finding another island to reside on for the remainder of your life! cuz it sure as hell sounds like you have nothing positive to say about the one you are currently on!
I think you need to go back to school, and study this time. Have you read any of what you said. Hooked on Phonics -worked for me!
Why don’t they just call it the rob peter to pay paul bill…
Ask Dr. Brown for the money to support St. George.
….
It is about time he did some good for this country.
…
Our expenses are too high now.
I feel sorry for St. George, but we have to think about and
support our family first.
VERY BAD MOVE TO INCREASE THE TAX!!!!!!
I DO NOT SUPPORT IT!!!!!
Southampton
It is actually a good tax and is a far better idea than cutting wages. Bermuda was built on these types of consumption taxes. If you don’t want to pay the tax you can walk or live without lights. Good job guys!
You still are cutting wages. More tax equals less income to take home.
Southampton.
We need a larger tax on those cell phones – come on let’s get that bill tabled.
Larger tax on alcohol and tobacco.
Also a junk food tax would be good for health, revenue, and insurance purposes.
Tax the luxuries more heavily.
That way you only tax the people who can afford to pay it. If you are broke you don’t need alcohol, or cigarettes, or junk food.
I like to drink, I smoke but have cut back, and I keep some junk food at home. However, this is a time of need for Bermuda. I don’t mind paying a bit extra for junk food cigarettes or alcohol because they are luxuries not essentials.
The elephant in the room has always been Bermuda’s tax system and the long
over due need to engage in a major over haul of that system putting it on
a more equitable and fair basic.
Instead what we are seeing on the part of both the OBA government and the corporation Of Hamilton is a policy of nickel and dine the ordinary working Bermudian to death. While the Sage commission is coming forth with
ever more dire pronouncements about the state of Bermuda’s fiscal status; they are staying away from other areas of Bermuda’s economic situation such as the need for tax reform. Under the OBA government what we are seeing is the down sizing of Bermuda’s standard of living and the
disproportionate burden of so-called shared sacrifice being place on those who can least effort it. What a disingenuous statement to be made by the OBA finance minister;’ he hopes that this latest tax on oil is not going to impact on it’s cost to Bermudians? Of Course it will have an impact. One thing when the next election comes around we should ask the question are we better off economically under this OBA government?
Millionaires, billionaires and business get: Payroll tax breaks, $14 million dollars, 79% reduction in PRC fees, foreign real estate fee goes to 8%, all other tax breaks
Regular people get: gas and oil tax, increased energy costs, increased food costs, pay cuts, diminished hours, unemployment, new parking rates in Hamilton, increased taxes and fees all around.
With the OBA the rich are getting richer and the poor poorer, willing to sell Bermuda to the highest bidder.
With the PLP we get a racist, homophobic party that scares away money and talent.
Can we get a party, or better yet independent politicians that are for ALL Bermudians and not just about personal gain, theocracies and self-interests?
But then we would have to change the definition of politician.
This sucks…
I have to correct the statement which I falsely attributed to the OBA finance minister; He did not state he hopes the latest oil tax increase does not hit the ordinary Bermudian; the Shadow PLP minister Burt made that statement. But that is wishful thinking this latest tax will hit the ordinary working Bermudian.
To date the Government has done NOTHING to reduce taxes to the average resident but lots to reduce taxes to business under the assumption that it will help cut job loses! Recently we had a Minister claim that they were in talks with Belco to reduce prices then this comes out which will clearly increase prices! And we are still waiting on the “discussions with a large grocery chain” about reducing food prices! I am finding it hard to believe anything that the Government says!
Bob Richards you are a blockhead! The people cannot believe your actions nor can they believe the lack of action on behalf of your colleges at that Cabinet table. WTF is the OBA doing? Does anyone know? It is evident that you all are making this up as you go along. YOU HAVE NO PLAN! THIS IS ALARMING! The gas suppliers don’t know what this is about! The finance Minister doesn’t know how much could be raised by this tax! And we the public are supposed to sit passively and wait for these people to decide by how much they will increase our GAS & ELECTRICITY? I THINK NOT!!!
NO Plan, NO consultation. NO thought! Just a wanton piece of legislation to raise the cost of living for everyone and to keep St. George’s QUIET? Imagine if the other guys had done this to business, the consumer and the people. This is either arrogance or ignorance or both!
Stop and observe for one minute the fate of the last Finance Minister and her party. Paula Cox had her asssss handed to her on December 17th 2012 for three reasons:
1. SHE HAD NO PLAN!
2. SHE did not care or consider the need or the will of the People.
3. SHE WAS OUT OF CONTROL
Bob, you have merely stepped onto the slope where Paula Cox was booted off. What’s worse is that the people expected AND DESERVE better. Bob, failure to check yourself will result in your asssss being handed to you on a silver platter, as well with a vote of NO CONFIDENCE on the floor of the house leveled against the beloved OBA. It can happen! SNAP OUT OF IT!
People of Bermuda you cannot afford to sit idly by and watch things of this sort happen around and to you.
PLP, I cannot see where you are offering any better service to the people of Bermuda or demonstrating that you will do better… YOU LOOK LAZY and COMPLACENT. GET BUSY!
Bermuda you are in a sorry state!
International Business has a clear view of the INSTABILITY and weakness of this OBA GOVERNMENT from the leadership down as well as the overall social instability of the island.
PEOPLE OF BERMUDA LOBBY YOUR MPs AND MAKE THEM UNDERSTAND THAT THIS IS NOT ACCEPTABLE AND IF THEY CONTINUE UPON THIS COURSE AND PASS THIS BiLL THIS WILL BE REMEMBERED AT THE NEXT ELECTION!
SHARED SACRIFICE MEANS SHARED AMONG US (the people) NOT YOU (big business). THIS IS NOT RIGHT!
Yah all bitch and moan about everything.
Bet you take time to buy beer and wine; sit at the bar with yah ace bouys and gulls and never even blink an eye.
Moaners.
Damned if you do, damned if you don’t. I don’t care what the government does to address the growing debt; some people are going to scream foul. Prevention is always better than the cure but since the preventative measure has long gone out the window; I suggest we all say “ahhh” and accept the medicine as it comes. It’s not supposed to taste nice, look pretty or smell like a bouquet of flowers folks. The danger looming is real. If you think there is pain now; look down the road of doing nothing and tell me what you see. Compared to most people in the world, we have had it easy but live long enough; you get your turn. We’ve been spending like a college kid with their first credit card so yeah looks like we’re gonna have to make due with less pocket money till our “parents” pay the bill off.
Dear PLP Supporters and people who hate the OBA:
THIS WOULD HAVE NEVER HAD TO HAPPEN, AMONG VARIOUS OTHER THINGS, HAD THE PLP NOT SPENT ALLLLLLLLLLLLLLLLLL THE MONEY!!
But yet you still have nothing to say about that…thought so.
Absolutely !
Of course they won’t because thats the TRUTH! And it hurts!
knock on effect will be belco fuel adjustment goes up as well.
If gov.wants to make some real money instead of always going up on on so called sin tax items and fuel. I know many people are not going to like this but..
Lets start a Luxury Tax which will include taxing of JetSkis, Pleasure Boats, High End Cars, High End Homes, etc.
Finally, let’s get more people living here. Demand is a great thing.
Next the Corporation of Hamilton will tax activity in Pembroke?
As for the impact of this, a million barrels of fuel a year is coming via the parish of St George’s for BELCO alone. A barrel = 159 litres. So 159,000,000 litres per annum adds up to an awful lot to tax. And guess who gets stuck with the bill?