Hotel tax break wins approval
Custom duties on items ranging from incontinence aids to table linens and hit the pockets of cruise ship passengers were passed in the Senate on Friday.
The Hotels Refurbishment (Temporary Customs Duty Relief) Amendment and Change of Title Act 1998, The Customs Tariff Amendment Act 1998 and The Miscellaneous Taxes Amendment Act 1998 breezed through the Upper House session and will now be presented to Governor Thorold Masefield.
The Hotels Refurbishment Amendment Act gives complete temporary relief from Customs duty for new and existing hotels in respect of capital goods to be used in a capital investment scheme, explained Sen. Alan Marshall (UBP).
Sen. Terry Lister (PLP) replied that anything done to stimulate hotel development was a good thing.
Sen. Walwyn Hughes (Ind) said the move was timely as hotel investment under normal conditions was not an attractive option because rates of return were lower than other investments.
The legislation eliminates duty on construction materials until March 31, 2001.
The Customs Tariff Amendment Act cuts duty on incontinence aids, linen accessories and portable computers, said Sen. Marshall.
It also allows bonded fuels to be returned to overseas suppliers; money donated to the hospital to be used for the duty free purchase of medical equipment; and agricultural equipment parts plus National Sports Centre building supplies to be brought into the Island duty free.
Sen. Lister and Opposition Senate Leader Milton Scott said the PLP agreed with the proposed changes but both wondered why the clause allowing schools to bring in duty-free laptop computers for students was not extended to teachers.
Sen. Marshall said this could be a possibility in the future.
The third piece of legislation, The Miscellaneous Taxes Amendment Act, allows Government to charge a tax per cabin for each night a ship is in port in Bermuda.
Cruise ship operators will pay $8 per cabin per night if the ship visits Bermuda between April and August. That rate drops to $4 for ships visiting in September and October. There will be no charge for ships berthing in Bermuda between November and March, said Sen. Marshall.
Sen. Lister said the PLP would support the Act so cruise ship passengers would pull their own weight in helping finance the Island's infrastructure as visitors staying in hotels did.
At the end of the session, Opposition Senator Neletha Butterfield called for congratulations to be sent to the Island's daily newspaper.
The Royal Gazette , she explained, had devoted a weekly full page to the celebration of Education Month which was very impressive.
Sen. Alan Marshall Graphic file name: MARSHA