The Minister of Economy and Labour has said the Government is reconsidering the role of import tax in Bermuda.

Speaking at the Bermuda Life and Annuity Conference, Jason Hayward named the high cost of doing business as a continued challenge.

“We want to determine whether or not we can move away from import duties to other forms of taxation that would actually lower the cost of doing business for a number of our small businesses that are service providers to the industry,” Mr Hayward said.

He added that the Government was looking at a number of actions that could help, including continuing to reduce payroll tax.

Mr Hayward also cited the island’s housing shortage as a problem for Bermuda’s international business sector.

He said: “The housing market is extremely tight, and we have to do more to increase our housing inventory. The new city plan allows for more mixed-use developments within the city.”

Conyers’ Sophia Greaves said that while these issues were rarely deal-breakers on their own, when combined with friction, could impact whether Bermuda won a mandate.

The law firm’s director, head of Bermuda insurance and reinsurance practice, said it was important to think about how Bermuda offsets its headwinds.

“I look at what we provide in Bermuda as effectively a luxury service,” Ms Greaves said. “We have to remain accountable to the standard of that service and deliver on the things we are good at.”

Kendaree Burgess, managing director of the Bermuda Business Development Agency, said headwinds could be reframed as opportunities.

“There are times when cost is a factor, and times when the cost is just the cost,” Ms Burgess said.

Mr Hayward said international business accounted for about 29 per cent of the island’s economic activity.

“From an economic standpoint, Bermuda remains resilient, and our economy remains robust,” Mr Hayward said. “The top three sectors in Bermuda are international business, real estate and renting, and financial intermediation. Together, they represent over 55 per cent of all economic activity in Bermuda. The economy is reliant on those three sectors for driving growth and future development.”

Talking about Bermuda’s advantages, Ms Greaves pointed to the island’s legal and regulatory stability, including its common-law system and regulatory environment.

“Stability means confidence,” she said. “It means credibility. It means certainty leading to confidence, and then confidence leading to investment.”

However, Ms Greaves said Bermuda’s reputation does not remove the need to stay competitive.

“Bermuda competes on standards, not short cuts,” she said.

During the conference at the Hamilton Princess & Beach Club, Mr Hayward also said the Government was working to expand local career pathways in international business through internships, scholarships and education.

The panel also highlighted demand for specialists such as actuaries, underwriters and accountants.

The conference was hosted by Bermuda International Long-Term Insurers and Reinsurers.