Public debate is healthy. But it should be grounded in what is actually contained in the Budget Statement, not in speculation about what may or may not occur years from now.

Recent headlines in local media would give readers the impression that this Budget proposed the immediate implementation of a personal income tax. That does a disservice to the public.  What the Budget statement does say is that this Government will begin the work of collecting the data necessary to allow Bermuda to have an informed discussion in the future. That is a measured and responsible step and it is entirely consistent with how we have approached tax reform to date.

This is not a novel direction. The Tax Reform Commission was clear in recommending that Bermuda explore “the merits of a low rate, broad based income tax system” and that Government undertake “enhanced data collection regarding personal and business income”. The Fiscal Responsibility Panel has similarly stressed the importance of broadening the tax base over time and strengthening the information available to policymakers to ensure long-term fiscal resilience.

We cannot commission experts, including a bipartisan Tax Reform Commission and an internationally respected Fiscal Responsibility Panel, and then disregard their recommendations because they prompt uncomfortable conversations. When those bodies advise that we improve the quality of our data before making long-term structural decisions, it is our responsibility to follow through.

That is what this Budget does.

Bermuda’s current system is efficient. It is also widely acknowledged to be regressive. If we are serious about building a tax system that is fairer and more sustainable, and if we want relief measures to be better targeted to those who need them most, we must recognise the limits of our current tax system.

The suggestion that the country is on the verge of implementing a new tax is misplaced. We are not at that stage. We have not even begun the data collection exercise recommended by the Tax Reform Commission. What we have done is signal that we will take the responsible first step so that any future debate is based on evidence rather than the assumptions we have seen in recent local media coverage.

This Government has a record of implementing tax changes responsibly. Corporate Income Tax was introduced after extensive consultation, modelling and careful sequencing. We did not rush and we did not ignore expert advice.

This Budget continues with that approach. Fairness is a destination and we must keep improving our systems to ensure that Bermuda’s tax framework is fairer and more sustainable. Following through on expert recommendations to collect the necessary data is a responsible step and the country should be fully engaged in a measured discussion about how best to achieve that goal in the future.

∙ David Burt is Premier and Minister of Finance