My opinion piece published in The Royal Gazette on October 7 discussed ten solutions that would require a huge financial investment by the Government in the social wellbeing of Bermuda’s youngsters as a necessity to combat the grooming of adolescents into gangs.

Our tax policies are one of many reasons why the Government finds itself broke and in great debt, thereby making it near-impossible to invest not only in our youth, but in the elderly, handicapped, health, defence and infrastructure.

The Government needs to introduce a 2 per cent corporate income tax on all international business — not just the one tenth. It needs to stop issuing the Zero Tax Assurance Certificates, which I have written and spoken about for more than a decade. Responsible corporate citizens should pay some form of tax wherever they are domiciled; it is not unreasonable to expect them to pay a fraction of their earnings to the Bermuda Government should they incorporate here.

Not taxing international business has an indirect correlation on the Government’s lack of ability both to look after her people and invest in our infrastructure. Furthermore, there is a disproportionate burden of taxation on Bermudians when compared to international business.

Bermuda’s customs department collects import duty, which makes up approximately 20 per cent of government revenue. The average purchase tax is 22.25 per cent; we also pay land tax, fuel tax, and payroll tax.

Up until 2024, global corporations and reinsurance companies have used our sophisticated and well-regulated offshore financial centre over many years and transferred trillions through Bermuda’s banks annually without paying any tax. International business does pay government fees, but they are minuscule in the wider context of doing business in a tax-free jurisdiction.

In 2025, the Government implemented a 15 per cent corporate income tax on one tenth of companies headquartered on the island. It was a dangerous economic gamble that could potentially result in a loss of income if they relocate. It was an extreme move for Bermuda to willingly get on the global taxation bandwagon steered by the European Union and the Organisation for Economic Co-operation and Development.

Real leadership would have been to implement a 2 per cent CIT many years ago across all international business, including reinsurance companies. This would garner the funds required by the Government to properly run the country, with the prudence and fiscal responsibility that is lacking at the moment.

The Government has a responsibility to use taxes wisely. I emphatically agree with the Tax Reform Committee that recommended on August 28 that a portion of money derived from CIT should be set aside to reduce the $3.2 billion national debt by 50 per cent within ten years and to create a stability fund, while supporting consistent funding of the Budget.

It is worth noting that international business contributes a great deal to our gross domestic product. My family have careers that are either in international business or dependent on it. So I am not an enemy of this industry; rather, an advocate of good corporate citizenship that is not reliant on the generosity of charitable donations and fixed government fees.

According to Investopedia, “Corporate citizenship refers to a company’s responsibilities towards society. The goal is to produce higher standards of living and quality of life for the communities that surround them and still maintain profitability for stakeholders.”

It would be beneficial to our people for our leadership to step up to the distasteful task of properly and fairly implementing a 2 per cent tax on the reinsurance industry and all exempted businesses — and it would be sensible to rethink the 15 per cent CIT on the one tenth of international business.

It would also be logical for captains of industry and their shareholders to step up to the plate and accept a 2 per cent CIT. Not only because it is good corporate citizenship to do so, but also because it would validate pushing back on the OECD and EU who constantly apply pressure on offshore financial jurisdictions that are tax havens.

• Cheryl Pooley is a political and social commentator, and three-times former parliamentary candidate