CAOB Welcome Construction Payroll Tax Relief
“Anything that helps construction firms to lower cost is a positive boost,” President of the Construction Association of Bermuda [CAOB] Charles Dunstan said in response to the Premier’s recent announcement about payroll tax relief.
In his National Address on Monday evening [June 9], Premier Michael Dunkley said the Government plans to introduce payroll tax relief for the construction industry.
Premier Dunkley said, “One area I am looking to support is the construction industry. Since 2009, we’ve lost more than 1,200 jobs in this important sector – an unacceptable loss of work and opportunity for able-bodied Bermudian men and women.
“To boost the situation, I have asked the Finance Minister to introduce in this Parliamentary session payroll tax relief specific to the construction industry. This will help stimulate new activity, creating and preserving jobs as we continue working our way out of recession,” added the Premier.
In response, Mr. Dunstan said, “There is little information yet on what will actually be proposed with this initiative, but anything that helps construction firms to lower cost is a positive boost. Payroll tax is a major burden on both employer and employee.
“Lowering that cost should have a direct effect on construction pricing, which should provide the potential developer with more incentive to invest in improvement of their assets. This is true for the complete range of interests, from resort-scale developer to the homeowner wanting a little renovation.
“As we wind down on the hospital project, Waterloo House and Fairmont Hamilton Princess, all of us in the construction sector are looking around to see what’s coming up. The truth is, not a lot that is actually breaking ground. Any initiative that gives developers the little extra incentive they need to move ahead is positive.
“We look forward to this Parliamentary session with renewed attention and enthusiasm,” added Mr. Dunstan.
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Ok, nice move but lets see if this filters down to the consumer where it really counts.
Because Construction cost on this island is stupid crazy.
The Construction Industry mainly consist of Architects, Lawyers, White Bermudians and Portuguese, go figure!!!!!!!!!!!!!!
While this sounds good, how does this affect the consumer?
what would help is some relief on the import duty on some construction materials
What about how it affect the workers that have fallen off and some hanging on by treads
I imagine not much direct benefit for the consumer but this will have a positive effect on the industry and help it from shedding even more jobs going forward. Hopefully it will stimulate the construction industry and create more jobs and those people can then spend their earnings in the local economy.
Thank you Mike Dunkley and team OBA Standing Strong for Bermuda and not just talking about it.
Relief for taxis, construction companies, smoke and mirrors from the OBA there are a LOT of local business struggling to maintain a small profit and headcount and yet we always see the chosen few as getting the relief, or is this just timed to benefit certain construction projects. Deal with the likes of BELCO lower our corporation tax, where possible defer duty until point of sale, or spread your gift to the construction industry uniformly across all business
The OBA is trying to help small businesses,after the destruction of many during the reign of terror.
so if I make $25 per hour, this rate should rise because of my reduced contribution of payroll tax ? or does that tax break belong to de big-boss….