Premier Tables Bill To Reduce Fuel Duty By 60%
“I will table the Customs Tariff Amendment Act 2024, which will reduce the rate of fuel duty for fuel used to generate electricity by 60%, from 20 cents a litre to 8 cents a litre,” Premier David Burt said in the House of Assembly on Friday.
The Premier added, “”This bill will be tabled under the Provisional Collection of Revenue Act and has been endorsed by Her Excellency the Governor to take effect from its first reading today.
“I would like to thank the Regulatory Authority staff for working with the Ministry of Finance to ensure this tax reduction can be implemented in time for next month’s billing cycle to reduce the impact of the recently announced increases in electricity rates.
“This reduction is expected to cost the treasury approximately $10 million. Again, this Government has positioned itself to take this action due to its strong economic performance and successful execution of our Economic Development Strategy.”
The Premier’s full statement follows below:
Mr. Speaker, I rise today to provide this Honourable House and the people of Bermuda with an update on the Government’s financial performance for Fiscal Year 2023/24 arising from the extensive work done to prepare for the audit of the Consolidated Fund.
Mr. Speaker, based on the work to date on the 2023/24 Consolidated Fund Financial Statements, the 2023/24 budget deficit is now projected to be $33.4 million, $10.1 million below the original estimate of $43.5 million. Revenue is projected to be $1.18 billion, $21.9 million above the original estimate of $1.16 billion. This increase is directly related to Payroll Tax collections, projected to be $541.7 million, $29.2 million above the original estimate of $512.5 million.
Mr. Speaker, this revenue performance was delivered after this Government reduced payroll taxes for 86% of the island’s workers and all local businesses. This result is a clear demonstration that our policies, which were not supported by the opposition, are benefiting working people and supporting a growing economy.
Mr. Speaker, Current Account Expenditures are projected to be $986.5 million, $13.9 million above the original estimate of $972.6 million. It is worth noting that this figure includes unbudgeted items such as a $16.3 million subsidy grant to support BHB operations and $4.9 million to support negotiated pay awards for teachers and additional Substitute Teachers and Para-Educators. These unbudgeted Current Account Expenditures were offset by savings achieved throughout government departments due to firm budget control measures from the Ministry of Finance.
Mr. Speaker, Interest and Guarantee Management costs are projected to be $126.1 million, $4.3 million below the original estimate of $130.4 million. Guarantee management fees totalled $1.3 million in 2023/24. The decrease in interest costs is related to the repayment of $50 million of Government debt in December 2023.
Mr. Speaker, Capital Account Expenditures are projected to be $98.2 million, $2.2 million above the original estimate of $96 million. These expenditures include a $2.9 million deposit for the purchase of two new ferries, $6.1 million for new electric buses, $8.3 million for stabilisation works at Tynes Bay Waste Facility, $4.8 million for a new Asphalt Plant, and $4.3 million in grant funding to Bermuda Housing Corporation to address the shortage of affordable housing.
Mr. Speaker, it should be noted that this is the first time in some years that the Government has been able to meet the Capital Budget target, which is welcome news. All Honourable Members can agree that Bermuda’s infrastructure needs are great, and it is vital that funds budgeted are spent upgrading Bermuda’s infrastructure.
Mr. Speaker, with these stats and figures, some may wonder what this all means. Put simply, it means that for yet another year, this Government has effectively managed the country’s budget and has once again exceeded budget targets, meaning that Bermuda’s financial position is stronger than forecast just five months ago.
Mr. Speaker, I understand these statistics do not fit the negative narrative peddled by the opposition. That is why it is vital we share this information so that the public is aware of the facts and not politically biased rhetoric.
That said, Mr. Speaker, this Government also understands there is still more to be done. We understand that economic growth, GDP statistics, or excellent financial performance do not mean much to a family struggling to make ends meet. This Government is well aware of the need to do more, and earlier in this statement, I shared that last year’s budget deficit will be $10 million less than estimated.
Mr. Speaker, since returning to office, we have stayed true to our commitment that as our economy and fiscal position continue to improve, we will provide further relief to Bermudians. Therefore, later today, I will table the Customs Tariff Amendment Act 2024, which will reduce the rate of fuel Duty for fuel used to generate electricity by 60%, from 20 cents a litre to 8 cents a litre.
Mr. Speaker, this is a government of action, and when confronted with choices, our response isn’t, “Money doesn’t grow on trees.” Instead, our response is, “What can we do to help?”
This bill will be tabled under the Provisional Collection of Revenue Act and has been endorsed by Her Excellency the Governor to take effect from its first reading today. I would like to thank the Regulatory Authority staff for working with the Ministry of Finance to ensure this tax reduction can be implemented in time for next month’s billing cycle to reduce the impact of the recently announced increases in electricity rates.
Finally, Mr. Speaker, this reduction is expected to cost the treasury approximately $10 million. Again, this Government has positioned itself to take this action due to its strong economic performance and successful execution of our Economic Development Strategy.
Mr. Speaker, this Government is focused on building a Bermuda for the future. I look forward to returning to this Honourable House in September to ensure we keep our promise to invest even more in the social programmes required to confront the challenges on our island. However, Honourable Members should note that this Government is only able to do more for our people due to our success in managing Bermuda’s financial affairs.
Thank you, Mr. Speaker.
Another bribe from Burt. Wake up PLP voters
See 5 th paragraph last line, i am not sure how that works.
OK ! BELCO is a non owned Bermuda ex pat business gets a break along with Fairmont and NOB all non Bermuda owner business trading in Bermuda while other Bermuda owned tourist venues get left out in the cold not such a good idea to promote low cost vacation in Bermuda.
If low cost housing makes sense if you can make Bermudians work for nothing. which it does not and will not happen
or work after todays inflation .
May be we could have a go at low cost tourist / visitor accommodation for locally owned businesses .
It called you scratch our back so we can scratch yours.
Father said you can not take the shirt off a naked man
This is how i see inflation,first of all its a loosing game for every one who played it . we could set up our own gambeling casino on St Davids island.
its is a competirion between business and the buying public call i pepetual motion” tick tock “.nothing stops
Cost of business goes up wages go up in that business so the books balance in that business.
or
Cost of doing business goes up and wages stagnate that cause devaluation of our dollar so we loose.
An insurance company wrote me a note telling me that my rates was going to increase by 10 % two months before the next due date.
Every thing comesout in the wash !
Do they have a cloudy crystal ball ? you bet they have !
When the inflation game is ove the prices do not go down the stay the same………. got ya !
Inflation and recession both will break a Nations back.
What Government can do is freeze all prices an stop the nonsense right in its tracks ,that has been done before with bank interest rates a 7% the banks open the flood gates . when Government lifted the ban .
So where is our tax break on gas / diesel which will reduce our/ their over all transportation cost .
We have cars driving twice a day driving to and from the city from each end of the island there is a 1/4 of a tank of gas gone .
The idea of electric cars are good for Florida but not such a good idea for Bermuda because we have so many hills and consequently do not get the abvertised statistical milage.
No sense walking to work as you get taxed on shoes. not that funny !
Do you know what a mid night tax is ? They have that in other countries.
BELCO have government over a barrel (of heavy fuel oil). Govt being forced to cut taxes to keep foreign investors in Belco happy with their profits. Meanwhile, Government find alternative methods to tax Bermuda residents to may up for their loss of revenue. Sigh!
“What Government can do is freeze all prices an stop the nonsense right in its tracks”
Actually, it cannot. If the PLP Government freezes prices on selected goods so that it is not profitable to sell those goods, those goods will no longer be available in Bermuda.
If the PLP Government freezes electricity prices so that Belco has no money to invest in infrastructure, the distribution system will slowly collapse.
It is all that simple.
Can somebody tell us why the percentage costs increased at different rates for goods and services varies.
Here is an example, concrete block doubled in price, that is 100 % increase our politicians call it affordable housing.
Many of the contractors who were building houses for our people at BHC at cost, just to say alive .
The golden rules are .
” It is better to have half a cake than no cake at all”.
“You can not get blood out of a stone.”
” You can not take the shirt off a naked man. ”
” Don’t put you hands in another man pocket .”
” Dooms day is just a figure of speech, until it happens. ”
” Ding Dong bell there is no money left in the well .”
” Get paid 4.00 pm on Friday then get broke at 4.01 pm same day.”
“Is it better to buy a lawn mower to day when is could cost more tomorrow”
” Is money worth more or less than the paper that it is printed on.”
” The definition of a bank check it is worth less untill proven other wise .”
A bank check is a promise to pay . Who keep promised these days ?
I love our Bermuda with all my heart and soul, but can make my mind up which end .
If inflation is not a money grab then we do not know what that is.
I repeat what I said in a different article, the PLP Government takes away with one hand and gives a little back with the other hand.
“Can somebody tell us why the percentage costs increased at different rates for goods and services varies.”
Price inflation does not affect all goods and services equally. What governments report as retail price inflation is based on an assumed mixed basket of goods. That allows governments to adjust the contents of the mixed basket in order to adjust for changes in purchasing habits and other matters. It helps to compare the current mixed basket of goods against current CPI and RPI.
It is worth noting that in Bermuda, experts have found that health insurance premiums are expected to rise faster than retail price inflation or real earnings increases for the foreseeable future. That is a clear example of price inflation not affecting all goods and services equally.
Again zi ask, why is consulting group to Government receiving funds from BELCO bills ..check t out. Refuse to pay that
1st August, Mr. Premier, parents, Grandparents are preparing to purchase school uniforms, shoes, sneakers, etc for September opening. Apparently, neither yourself nor anybody else involved with this horrendous increase are not aware of this or are aware and just do not care a camel’s hump about our families struggles. Also, they have to also work out their finances to make sure there is breakfast, lunch, dinner and snacks. You Sir and your party house and others do not have to worry about that. In your speeches Sir, we care about you, we are doing things to assist you…blah. blah bah. You all do not give a donkey,s swing of it,s hindquarters about anyone in Bermuda but yourselves. Remember Bermuda, X bring and makes serious changes.