Legislators have agreed to a fee exemption for certain permit companies that maintain a token presence on the island to reduce their tax liabilities.

Companies without any physical presence in Bermuda will be charged $25,000, raised from the previous $1,995 for having a Bermuda “branch”.

David Burt, the Leader of the Opposition, harshly criticised finance minister Bob Richards for having to fine-tune another revenue measure from the latest Budget.

But Mr Richards said he did not believe the proviso would affect more than “40 of the 400 to 500 companies that exist”.

The minister forecast no change in government revenue, as it had been budgeted under the premise that “some of those companies may pack up and leave”.

“Those that really want to be here are going to have to pay. Those that don’t — see you later,” Mr Richards said.

Aside from the Government’s pressing need for revenue, the minister said such steps were necessary in light of the bad press generated by companies avoiding taxation through Bermuda.

This story has been amended to clarify that the increase in permit fees applies to companies without a physical presence in Bermuda.