ABIC Responds To The 2026-2027 Budget
ABIC Chair Christian Dunleavy has responded to the 2026-2027 Budget.
Mr. Dunleavy said, “ABIC, whose members are significant payers of the Corporate Income Tax and payroll taxes as well as key job creators, welcome the budget’s prioritization of CIT revenue for debt repayment. ABIC also supports the establishment of a Stabilisation Fund to reduce the expected volatility of the CIT over time due to industry concentration among the CIT payers.
“Additionally, ABIC supports the utilisation of a portion of the proceeds for efficient delivery of social services, critical when so many members of our community struggle to meet the cost of living.
“The CIT has transformed the Bermuda’s Government’s revenues and presents an unexpected opportunity to reduce Bermuda’s debt burden. Reducing and eliminating debt servicing will free up existing budget room for social services and reducing other taxes, mitigating the need for the increase or creation of new taxes and fees.
“The cost and ease of doing business in Bermuda remain a key concern for ABIC members and our desire to support job creation and economic growth in Bermuda in an increasingly competitive global environment. Expanding the CIT tax credits to payers beyond regulated insurers and reinsurers would be a welcome step.
“Separately, discussion of a new personal income tax alongside a new and significant CIT requires careful consideration, study and extensive consultation. A personal income tax, alongside the CIT, could be a disincentive for job retention and creation on island as well as a countermeasure to the recently introduced substance-based tax credit, the job-based benefit factor.
“ABIC believe the immediate priority is onboarding and understanding the impact of the significant new taxes raised through the CIT without harming Bermuda’s competitiveness. This can be achieved with the continued good work of the teams at the Ministry of Finance and CITA, supported by close industry collaboration.
“ABIC also looks forward to a robust consultation exercise on other areas of reform including proposed Universal Health Care and social insurance reform.”
