Duty relief aimed at cost of goods and electricity
The Government has announced plans to slash duty rates to help ease the financial burden on families.
David Burt, the Premier, announced in the 2026-27 Budget Statement that the Government will eliminate customs duty on fuel for electricity generation, which was previously reduced to 4 cents a litre to help reduce power bills across the board.
Mr Burt added: “This reduction will mean that over the past two years, this PLP government has eliminated the taxes on fuel for electricity generation, saving the average household $375 a year.”
Annual vehicle licence fees will also be cut by a further 10 per cent, he said.
He further announced that duty would be reduced or eliminated for goods including “household hygiene and cleaning products, infant nutrition and care items, core dairy products, bakery goods and grains, pantry staples, selected meats and fresh produce”.
Mr Burt added: “These are the basics that families purchase week after week.
“This measure is designed to ease pressure at the checkout counter and to make a practical difference in the cost of living for Bermudian households.”
Delivering the Budget Statement, Mr Burt said that while the economy is stronger, the Government was aware that many Bermudians still faced a high cost of living.
In addition to efforts to reduce payroll tax for workers and address housing challenges, the Premier said the Government was working to help ease the financial burden.
Among the measures unveiled was the waiving of some government fees for registered farmers for applications, testing, inspection and shipment processing for products necessary for local food production.
Mr Burt said: “These are technical charges, but for small and medium-sized producers they accumulate quickly and can slow expansion. Reducing them is a practical way to support farmers and lower barriers to increased output.
“The goal is to make it easier for local producers to grow more food more efficiently and at lower cost.”
Duty will also be reduced or eliminated for motor vehicle parts and building supplies that were unintentionally excluded from previous reductions, while duty on fresh flowers will be cut from 25 per cent to 5 per cent.
The Budget also followed through on the Government’s earlier pledge to reduce private car licensing fees by 10 per cent effective from April 1.
Mr Burt said: “For Bermudian families, vehicle licensing is a fixed annual cost, and this reduction provides direct and predictable relief.
“It is another step to lower recurring household expenses, ensuring that Bermudians benefit from the country’s stronger financial position.
“These measures are about one thing: putting money back into people’s pockets and ceasing the cost pressures families are feeling.”
The Premier also said that the Government would establish a “strategic investments envelope” to support measures including the development of co-operatives, which the Government previously said could help to lower food costs.
Mr Burt said: “Once co-operative legislation is enacted, there should be a clear and properly resourced pathway for new co-operatives to form and operate.
“By pairing legislation with funding support, technical guidance, and appropriate oversight, we are giving co-operatives a real pathway from idea to operation which will strengthen Bermuda’s domestic economy.”
In a statement, a Belco spokesman welcomed the elimination of the fuel tax, stating that it would result in further savings to customers on top of the 10 per cent rate reduction in January.
The spokesman said: “Belco recognises that electricity is a large component of monthly expenses for Bermuda residents and businesses and continuously reviews its operations to identify savings that can be passed on to customers.”
Wayne Caines, the Belco president, said: “The 10 per cent rate reduction in January was the result of hard work reviewing every aspect of our operations.
“For a decade, we have consistently pushed for the elimination of the fuel tax, and that sustained advocacy is now delivering results. The work Belco has done and continues to do is providing meaningful relief to our customers, and we're not done.
“We will keep finding ways to stabilise electricity costs.”
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