Business leaders say tax hikes will hurt
International business leaders yesterday called for no extra taxes on the Island's biggest economic sector in today's Budget.
And one warned the Island could start losing offshore enterprise if the cost of trading from Bermuda increased.
And the man in charge of steering the Chamber of Commerce's bid to capitalise on hi-tech internet trading -- e-commerce -- called for more funding to be pumped into the drive to make Bermuda a world leader.
One offshore insider said the massive hikes in land tax last year had already contributed "significantly'' to the cost of doing business in Bermuda.
He added that new rules for work permits -- including a fee scale for renewals -- had also set alarm bells ringing with Bermuda's biggest earners.
Chamber of Commerce chairman of the International Companies Division David Ezekiel was yesterday off the Island and unavailable for comment.
But vice-chairman Harry Wilken took a more measured view: "We continue to stress support for Government to improve immigration and work permit processes and procedures.
"We recognise the challenges -- and we are in favour of the programme to train Bermudians and support efforts to improve the Bermuda College.'' Mr. Wilken added that the international business world continued to keep tabs on Government expenditure, adding: "That said, given our support of education through our scholarship scheme, we would endorse increases for education.'' But he said: "We are against increases in payroll tax at anything above inflation and certainly not above the cost of living index increases.'' Home Affairs and Public Safety Minister Paula Cox recently announced time limits would be set on work permits -- although with exceptions for essential personnel -- and that the cost of renewals would go up over the years.
She did not, however, indicate what the cut-off time for work permits would be, or give details of a fee schedule for renewals.
But Mark Diel, chairman of the newly-formed Chamber of Commerce e-commerce division, said Government had to spend to boost e-commerce -- and work fast to set the tone for the future: "I would certainly hope, if possible, there would be some funding to extend the Department of Telecommunications.'' Mr. Diel said staff were doing a good job -- but added one, Don Donovan, was "doing the work of three people.'' He added: "They need someone who will be dedicated to e-commerce -- we need a bigger department.
"We have essentially expanded the Ministry to include e-commerce, which is massive, but we have the same number of people. The idea, one would hope, is, with extra companies coming into the Island, hopefully from what is being charged these companies for setting up would assist in funding.'' And Mr. Diel said: "We are going to need the infrastructure to build e-commerce up -- and that applies equally to Government and the private sector.'' TAXES TAX