Customs duty on electronics drops to 25%

Sixty million dollars worth of non commercial goods came through the Bermuda International Airport last year netting the Government $10.1 million in duty and the number could rise now that duty on clothing has risen 2.5 percent.

The Senate passed amendments to the Customs Tariff Act last week. The new duty structure will see tax on clothes rise while other goods will see a drop in duties. Last year clothes and footwear accounted for almost $4.5 million in duty to be collected, approximately 45 percent of the total duty collected. Duty on clothes and footwear is now 25 percent, up 2.5 percent.

However, the amendments brought good news for shoppers as well, duty on electronics will drop by a large percentage.

The Government will now collect a duty of 25 percent of the cost of the good, down 8.5 percent. Electronics accounted for approximately ten percent of all non-commercial goods brought in last year. The duty free allowance of $100 remains. The new duty structure, which involves one flat rate for all goods will also mean speedier lines at the airport.

The Customs Tariff Amendment Act also brought good news for fishermen. They will receive concessions on the importation of items used to store and package catch. Duty-free diesel fuel, which was also promised to fishermen in the Budget, was not included in this amendment.

Fishermen will now receive similar concessions afforded to farmers, Sen. Raymond Tannock said. He told the Senate that representatives for the Islands 332 registered fishermen lobbied to receive duty concessions that farmers were given last year.

He added that these amendments did not address duty concessions on fuel for fishermen. He said that the duty free fuel will be dealt with in the near future through a Remission Order. He added the fuel relief should be in effect by April 1, 2006.

Opposition Senators did not object to the Amendments.

Charitable land grants no longer taxed

People wishing to sell or gift property to non-profit groups in order to maintain open space in Bermuda will now be excused from paying Stamp Duty.

The Senate passed the Stamp Duty Amendment Act in a bid to promote sustainable development and maintain Bermuda?s green areas.

?The exemption will apply to the purchase or transfer of land to a non-profit or charitable organisation for use as open space to be enjoyed by the general public,? Sen. Raymond Tannock said.

The Government has decided that land will be deemed to be an open spaces if it is not built on and can be accessed by the general public ? though the Minister of Finance has a ?limited? amount of discretion as to what property is deemed an open space.

?Bermuda is a densely populated country and preservation of open space is critical in maintaining a positive social and environmental balance in our community,? Sen. Tannock said.

The Opposition Senators did not object to the amendments.