OBA’s De Couto On Budget, Taxes, & More
“Some of the most important questions were the ones the Government didn’t answer at all,” Shadow Finance Minister Dr Douglas De Couto said.
Dr De Couto said, “Last Friday, Members of Parliament wrapped up their detailed debate on the Ministry of Finance’s budget. We heard from Premier Burt and Junior Minister Furbert about the Ministry’s spending plans, and had the chance to ask detailed questions. But as usual, some of the most important questions were the ones the Government didn’t answer at all.
“The lack of response started earlier, on May 9, when we presented the Opposition’s official reply to the Budget. This reply kicks off the General Economic Debate. Normally, Government MPs would speak up during this debate to defend the Government’s budget and economic performance.
“But this time, the Premier and Minister of Finance left halfway through our presentation, and didn’t return. After a few OBA MPs spoke in support of our reply, no Government Minister got up to defend their own budget. As far as I know, this may be the first Budget debate where no Ministers even tried to defend their own financial plan.
“A big part of this year’s Budget depends on the new Corporate Income Tax [CIT]. It’s the start of a trend where Bermuda will rely more and more on taxes from international businesses. That’s why we focused many of our questions on the CIT—to judge how solid the Government’s estimates really are. While we got a few answers, many key questions were ignored.
“For instance, we asked: How many companies will actually be paying the CIT? This matters because if lots of companies are paying, we’re in a safer position. But if most of the tax is coming from just a few companies, we’re at risk. If even one or two of them leave or stop paying here, the Government’s income could take a big hit. The Premier said he was confident in the estimates, but didn’t—or wouldn’t—give a number. That’s a basic question, and it should be easy to answer.
“We also asked if an independent review had been done on the Government’s CIT projections. In finance and insurance, it’s standard to double-check major forecasts by having someone else review the numbers or even use a different approach. This helps confirm the assumptions and improves confidence. From what the Premier said, it doesn’t look like that was done.
“Lastly, we asked how the Government will decide how much of the CIT revenue to put aside in the “tax refund reserve fund” and how much to use for spending. This reserve is important because some of the tax collected might need to be refunded after companies file their 2025 returns in late 2026. Again, the Premier didn’t answer.
“We had hoped this debate would leave us feeling confident in the CIT forecasts and comfortable with the budget overall. Instead, the Government’s refusal to answer even basic questions raises more concerns than it resolves. I encourage you to ask your MP the same questions we asked—and see if you can get clearer answers.”
Dr. De Couto seems to have overlooked the fact that the projected CIT revenue has already been spent on future pipe dreams, taxpayer-funded travel, and other things, but no one is talking.
“the projected CIT revenue has already been spent”
Are you referring to my “projected CIT revenue” of nil or the Minister of Finance’s “projected CIT revenue” of $187,500,000.00 this fiscal year?
the Minister of Finance’s “projected CIT revenue” of $187,500,000.00 this fiscal year (and beyond)
The government is salivating at the prospect of spending hundreds of millions of dollars of easy money on who knows what.
KPMG 2025/26 Bermuda Budget Snapshot
“Fairness in action – building a Bermuda where everyone benefits.“
On Friday, May 2, Premier and Minister of Finance David Burt delivered the 2025/26 Budget Statement. This year’s budget projects a $43.3m surplus — Bermuda’s second consecutive budget surplus and largest in over 20 years.
The budget reflects the Government’s strategy to invest in infrastructure, healthcare, and cost-of-living relief while maintaining disciplined financial management.
>>> For the first time, revenue from the new Corporate Income Tax (CIT) is included, expected to generate $187.5m, with CIT income forecast to average $600m annually for 2026/27 and 2027/28. <<<
Real GDP growth in 2024 was estimated at 4.5–5.0%, with inflation easing to 1.9%. Employment remains strong, with the lowest unemployment rate since
1970 (1.6%), driven by strength in international business and continued recovery in the tourism sector. This year’s budget includes a record capital investment of $149.8m, with major funding allocated to road repaving, new ferries and buses, the replacement of the Swing Bridge, Tynes Bay Waste Facility upgrades, and new healthcare infrastructure.
Good