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Senate passes Proceeds of Crime amendment

Senators have passed a Bill allowing cash seized from criminals to be used to educate the public about drugs and help rehabilitate addicts.

The Proceeds of Crime Amendment Act 2009 releases money from the Confiscated Assets Fund for combating drug abuse and improving Bermuda's anti-money laundering regime.

It means cash can be spent on initiatives including: investigating suspected drug trafficking and money laundering; training officials in tackling drug trafficking and money laundering; covering costs of treatment and rehabilitation of drug addicts.

The Bill was part of a ream of new legislation which passed through the Upper House yesterday, after being read for a second and third time by Attorney General Kim Wilson.

Another Bill to get the go-ahead was the Temporary Loans Amendment Act 2009, which allows Government to increase its overdraft from $15 million to more than $110 million this year.

That piece of legislation enables Government to borrow ten percent of its approved estimated expenditure each year on a short-term basis — about $111.7 million this year.

The Contributory Pensions (Amendment of Contributions and Benefits) Order 2009 means seniors will get a five percent rise in pension payments from August, while contributors will not have to pay more into the scheme for at least a year.

People on the basic contributory pension plan will receive an extra $45.33 each month as payments rise from $906.40 to $951.73. Pensioners with maximum coverage will see monthly payments increase from $1,215.66 to $1,321.33 a difference of $105.67.

Under The International Cooperation (Tax Information Exchange Agreements) Amendment Act 2009, Bermuda will collaborate with 12 countries in an effort to boost transparency and clamp down on secretive tax havens.

The Island is currently obliged to obtain only information that is physically "in Bermuda", but the new amended legislation will drop that stipulation. It comes after European leaders planned to draw up a list of uncooperative tax havens and to prepare "a toolbox of sanctions" to use against them.

The Customs Tariff Amendment Act 2009 will reduce customs duty to zero for renewable energy goods. And three pieces of legislation provide for tax breaks for hotels, restaurants and cruise passengers. The Miscellaneous Taxes Amendment Act will see departing passenger tax and passenger cabin tax axed for cruise ships visiting Hamilton and St. George.

The Hotels (Temporary Customs Duty Relief) Amendment Act 2009 extends the offer of zero customs duty on goods imported for the renovation and refurbishment of hotels from May 31, 2009 through to May 31, 2014. The tax relief has been in place since 1991.

The Restaurants (Temporary Customs Duty Relief) Amendment Act 2009 gives a tax break for goods brought in to renovate and refurbish restaurants.

All the legislation was passed without objection from the United Bermuda Party or independent Senators.