Tax and duty breaks including an expansion of duty exemptions have officially come into effect, the Ministry of Finance said.

The changes, recently approved by the House of Assembly, include increasing the duty exemption for returning residents from $200 to $300, elimination of duty on motor vehicle parts, reduced duty on building supplies, reduced fuel tax on electricity and a 50 per cent reduction in monthly mobile phone taxes.

David Burt, the Premier and Minister of Finance, said: “This year's Budget contained a series of tax reductions that will come into effect over the next nine months.

“The Government will do all that it can to reduce the cost of living and cost of doing business in Bermuda, and these tax and duty reductions will have a positive impact.

“The first stage of these reductions takes effect from today and it is important that residents are aware of these changes.”

Further tax reductions have also been approved and are set to be implemented, including a 50 per cent reduction of the base rate of land tax and a 10 per cent reduction in vehicle licensing fees for private cars.

The land tax change will come into effect on January 1, 2026, while the licensing fee decrease is to commence on April 1 next year.