Government Announces Energy Tax Reduction
Following the recent electricity rate increases, the Government announced it “will reduce energy taxes by at least 50%” saying the Cabinet approved the reduction yesterday and they are working to have it tabled in the House of Assembly on Friday “so that the tax cut can go into place with immediate effect.”
A Government spokesperson said, “In response to the recent electricity rate increases approved by the Regulatory Authority [RA], the Government of Bermuda today announced a significant reduction in energy taxes. This decisive action is aimed at providing much-needed relief and support to Bermudians who are already grappling with the high cost of living.
“The Government will implement a substantial cut in energy taxes, which will reduce the electricity rate increases recently granted to the Bermuda Electric Light Company [BELCO]. This measure is designed to alleviate the financial burden on households and businesses across the island.
“In signaling today’s announcement, the Premier and Minister of Finance, the Hon. David Burt, JP, MP, emphasised the Government’s “commitment to supporting the well-being of all Bermudians.”
The Premier said, “An increase in electricity costs at this time is simply too high of an added burden on the backs of Bermudian families. An increase in our BELCO bill doesn’t just drive up household bills. It further leads to increases by businesses, landlords and other entities having to adjust to this unexpected burden. By reducing energy taxes, we are taking concrete steps to ensure that the increase in electricity rates does not disproportionately impact our community. Our priority is to safeguard the financial stability of Bermudian families and the vitality of our local economy.”
The Premier further detailed the specifics of the tax reduction, adding, “The country’s improved economic performance has given the Government the ability to reduce taxes further. The Government will reduce energy taxes by at least 50% and will continue to monitor the situation closely and take further action if necessary to protect Bermudians from undue financial strain.
“The Cabinet approved the reduction yesterday [July 16], and we are working to have it tabled in the House of Assembly on Friday [July 19], so that the tax cut can go into place with immediate effect. This Government remains steadfast and committed to fostering a sustainable and prosperous future for all Bermudians. By taking swift action to reduce energy taxes, we aim to provide immediate relief and demonstrate our unwavering dedication to the well-being of our people.”
This is yet another desperate attempt to buy/retain votes.
Burt must not have been expecting the uproar from all sides over the impending increase in energy costs. Within a week he will railroad something through the HOA supposedly to nullify, or at least soften, the blow to the consumer.
Too bad he won’t do anything about the dogs or mayhem on the roads as fast. Oh yeah, votes to be lost there.
Exactly what will be the bottom line difference to the consumer with a cut in fuel tax? I’ll wager not much if anything at all.
More theatricks by This Government.
Waiting for the punch line where someone’s taxes/fees go up. It was pointed out during the electric vehicle consultation that the Government’s high-paid RMI consultants and our Government geniuses have no idea how to make up for the lost revenue in fuel taxes.
Perhaps our esteemed Ministers and the Big Guy will cut back on their first-class airfare and trips to useless conferences. (sarcasm)
RMI work pro-bono and as the EVolve Bermuda policy hasn’t been finalised yet I am not sure how you can assume anything about how the Government proposes to recover any possible lost revenue associated with it.
RMI does not work for free. Who pays the salaries of RMI consultants to promote EVs? Chinese sponsors? RMI was blasted in the US Congress for pushing a debunked “study” to ban gas stoves in the US. Would Bermudians give up their gas stoves? RMI has a large presence in China and a member of their Board is a Chinese national with dubious political ties to the CCP. So, let’s buy 70 Chinese electric buses based on RMI’s recommendations!
I suspect the EVolve Bermuda (rebranded) policy is a foregone conclusion – just like other “consultations.” I keep looking for Government officials to go on fact-finding trips. When presented with a long list of endless EV issues, tens of millions of dollars in taxpayer costs to upgrade roads & infrastructure, loss of fuel tax revenue, quality problems with EVs, and consumer costs, the Government comes back and says the policy has widespread support. BS. The Government is purchasing EVs and to my knowledge, not one MP and not one Minister has personally spent their own money on one.
Lost fuel tax revenue came up in the RMI/Government consultation web broadcast on the EV consultation. The response was that it was an issue for the Minister of Finance to solve. Brilliant!
Follow the money.
“make up for the lost revenue in fuel taxes”
What lost revenue? Electric Vehicles still have to be charged and Belco still uses fuel oil to generate electricity. That fuel oil is taxed.
All that is happening is that fuel taxes are being paid on Belco fuel oil instead of Rubis or Esso imported petrol.
Yes, one can argue that taxes on Belco fuel oil do not equal taxes paid on petrol at a retail station, but the fact of the matter is that there is a reallocation of tax revenue, not “lost revenue in fuel taxes”.
Interesting, but the RMI consultants and the Government would disagree with your assessment. Perhaps you could show your math calculations to educate RMI and the Government?
” the RMI consultants and the Government would disagree with your assessment.”
Which part of my assessment?
(a) That Electric Vehicles still have to be charged?
(b) That Belco still uses fuel oil to generate electricity? Or
(c) That fuel oil is taxed?
Happy Obtuse Friday!!! You never disappoint.
“Perhaps you could show your math calculations to educate RMI and the Government?”
Your COST calculations on LOST TAX REVENUE. Do I need to explain further? Show your math. This is all about tax revenue lost, not (a) That Electric Vehicles still have to be charged? (b) That Belco still uses fuel oil to generate electricity? Or (c) That fuel oil is taxed?
Wait, you will never produce any calculations. My bad for even asking. But once again, I am correct and you are not.
“Your COST calculations on LOST TAX REVENUE.”
I did not say there would be any lost tax revenue. I said there is a reallocation of tax revenue, not “lost revenue in fuel taxes”.
Another PLP bribe so their voters wont run away
“the Government announced it “will reduce energy taxes by at least 50%” saying the Cabinet approved the reduction yesterday”
The PLP government takes our money with one hand gives some of it back with the other hand.
1) Belco benefit from the tax on energy being cut and they increase rates…
2) Government funds reduce from less tax and therefore is less money to pave roads and do the things they actually exist for.
3) The consumer, you, pay more, but a little less more than was expected.
If we go back before the BELCO raise was announced, who really benefitted.
A) We the people of Bermuda lost out from less services (and now definately not a balanced budget (which will cost us Bermudians more in the coming years) and an increased electricity bill.
B) The government created a propaganda tool to pretend they saved the world (all smoke and mirrors (See A)
C) Belco…they get to raise rates and have lower input costs (Which PLP benefit from this as high ups on BELCO COMPANY STRUCTURE hmmmm, time to expose them)
Well done.
At this stage, anything that mitigates the rise in Cost of living and utilities is useful. Yes, there always consequences but for families who are struggling the proposed Belco increase was simply unsustainable. Thank you to the PLP administration for recognizing this and doing what is necessary at this time.
Only ones who benefit from this are the PLP politicians and BELCO.
Bermudian voters pay for it as taxpayers. See the big picture people.
“Only ones who benefit from this are the PLP politicians and BELCO”
And BELCO remits its profit to its Canadian parent company, Algonquin.
Don’t worry in another few weeks the OBA will role out another black male/female surrogate.
ENERGY IS THE WORLDS GAME CHANGER.
B.E.L.Co price increase, is the highest ever, over any other we have had to endure say for food,where both the Bermuda Government and its people looses and B.E.L.Co wins.
There may be a next time you all can bet on that .
We can not put a Band Aid on that one .
This present situation rate hike is beyond redicuouse as Bermuda take another ten to twenty steps backwards.
This increase in rates by B.E.L.Co without doubt is a money grab by big business .
People will always play a tole.
Why did I say the Government ? well ! we the people are the Government regardless of which way you look at it, we loose ,with more money leaving the Island, to guess who.
Now ! The Government has to find a way to recover its losses in perpetuity.
Another way of looking at is that Government in reality have no money, as it is the peoples money which the Govermment holds in trust.
There is hope for a change or improvement in our respective economies, only if and after the USA elections.
However there is no guarantee.
“This increase in rates by B.E.L.Co without doubt is a money grab by big business”
This increase has been approved by the RA, the same RA that is required by law to follow directions issued by the PLP Government.
“it is the peoples money which the Govermment holds in trust”
I really wish that were true.
That’s about sums it up for the obaers. While the tokens are at the front of the OBA the real clowns of the party are holding the balloons in the back.
UNDERSTANDING MONEY
Recently we have seen far to many big Bermuda ventures ” go under” .
I should say fail having stood the test of time.
The first to go was H.A.and E. Smith Ltd followed by Trimingham brothers who bought Smith out , as a result “T” Bro over extended themselves in the process .
We never though the A.S. Cooper would go under but it would be inevitable as they were basically all in the same retail business.
The USA was selling the same merchandise for less, so, the strongest man always wins.
The Bank of Bermuda Ltd went through the N.Y stock exchange as a result of stock take over by another bank.
The Bank of N .T. Butterfield may be no longer locally owned.
Grand Atlantic on South Shore with their financial difficulties caused by partly poor judgement amd the locals did not want it , so the buck stopes there !.
Our Airport and Hospital just got in under the wire .
We are facing an economic situation with B.E.L.Co who would have though the rising cost of fuel would trickle down to you and I the tax payers, with the Government having its feet being held to the fire.
We did not get an answer as the latest relationship between Argus who are holding many of our pension funds and BF & M
All the above relate to unbelievable financial losses which affects each and every one of us as we come to fully realize the gravity of” Trickle down “.
I am thinking our Government is strugling to keep its head above water with our national debt ,however they took a big un fair hit for the Airport.
I said in an earlier post any delay in construction will escalate the cost., if you built the airport today it would double the cost .
We made lemon aid out of that one.
We can put tha building in the Guinness book of records all we need do is market Bermuda and the Airport as number one.
You may ask the qestion” who is next to go”? that is not for me to say or even contemplate
B.E.L.Co FUEL COST.
The board of Directors of any well run business in order to stay in business have a responsibility not only its Share Holders and the General Public it either serves or caters to.
B.E.L.Co I assume is a monopoly here in Bermuda and that my friends is a different kettle of fish if a business function as a monopoly and suffers from losses or make a bad deal all it has to do is pass on that loss to the customer which i presume has just happened here .
A Business company who suffers losses has either to suffer those losses or eat sour grapes, or, as i have said in my previous post crudely say . Go Under. When you take a common sense look at it ” EVERY BODY LOOSES ” as vast quanties of money are lost all the way down to the mail girl who will go hungry. BELCo you know what has happened hurts every one including little people.
When a monopoly face hard ship it has no alternative to keep the light on.
Never the less I would have expected B.E.L.Co to absorb the risk over time fuel price go up and down that is to say the will win some and loose some .i al so expected them to realize that Bermuda was suffering a heavy burden with inflation and covid .
I am sure are aware that the RA and Government our people are asking the big question WHY! will it happen again?
I am also aware the we have been in economy mode for some time please dont tell us to turn our TV off and not to take a bath .
Gentlemen, i have already have long ago lived through those days before electricity.
B.E.L.Co and the people of Bermuda are also part of that triangle
One reason for two question.
What do we go to work ?
Why Is a company in business?
Money !