Land tax increases on high end of the market properties — reaping Government $50 million — were passed through the House of Assembly on Wednesday night.

Stamp duty increases, also aimed at the upper end, will collect another $1 million, but are said to present large duty hikes for individuals inheriting from the deceased.

Under the Land Tax Amendment Act, the highest annual rental value (ARV) band is raised from 18.23 percent to 19.20 percent.

Finance Minister Paula Cox told MPs: "The expected total yield from the land tax arising from changes in ARVs and the minor change in the rate structure for residential properties is $50 million."

Deputy United Bermuda Party Leader Trevor Moniz argued Government should be mitigating the effects of the recession by lowering tax rather than increasing it.

The Stamp Duties Amendment Act, which was also passed on Wednesday, relates to duties on a deceased person's estate.

It creates a new top band rate of 20 percent chargeable on the portion of an estate which exceeds two million dollars. Until now, the highest band has been 15 percent, due on the portion exceeding one million dollars.

Under the new legislation, the 15 percent band rate will instead apply to the portion of the estate between one and two million dollars.

Until now, people have not had to pay anything on the first $50,000 of the estate; this is now being extended to the first $100,000.

According to Rego Sotheby's International Realty president Buddy Rego, this means somebody inheriting a $3 million estate is faced with a 12.5 percent duty increase, with the amount they have to pay in stamp duty jumping from $387,500 to $435,000.

Ms Cox said the changes are necessary to account for a loss from concessions for groups such as first-time owners in recent years.

"Many of these concessions have matured and the decline in stamp duty receipts has become evident," she told the House.

Reflecting on both the land tax and stamp duty legislation, Mr. Rego said: "Clearly in both instances, the target here is the upper end of the market and the relief is given to the lower end."

He said no tax increase is welcomed by the people, but the land tax increase is probably not unpalatable, although residents would expect good services such as garbage collection and paved roads.