Laws designed to keep more money in people’s pockets were passed in the Senate on Wednesday.

They included legislation that will make sure hospitality staff do not hand over payroll tax on gratuities, instant stamp duty relief for first-time homebuyers and customs relief on 21 food and household items.

Three Bills were presented by Arianna Hodgson, the Junior Minister of Labour, Finance and Health.

The Customs Tariff Amendment (No 3) Act 2022 will reduce the duty rate to zero on food such as ground beef, chicken, turkey, butter, processed cheese slices, fresh bananas and pasta.

Customs relief will also be applied to laundry and dish detergent, baby diapers, sanitary towels and tampons.

Ms Hodgson told senators that major features of the legislation included the extension of an essential commodities list from 2018 that eliminated duty on items such as eggs, potatoes, cauliflower, carrots, apples and cereals.

She said: “Now we are facing global inflation not seen in a generation due to the coronavirus pandemic, supply-chain issues and the war in Ukraine.

“The cost of food is increasing throughout the world.”

Senators heard that the island’s three major grocery chains agreed to reduce items in the full basket of essential goods by 10 per cent.

Ms Hodgson added: “The honourable Premier and Minister of Finance has reiterated that he believes it is an important point for the people of Bermuda to understand: reductions of at least 10 per cent will also be made on the items where duty was previously 0 per cent, due to the agreement reached between the Cost of Living Commission and local grocers to ensure that Bermudians have lower prices for essential items.

“To confirm that these reductions are being passed on to consumers, the Cost of Living Commission will require prices of essential goods to be electronically reported and that information will be able to be accessed by the public.

“This elimination of duty on more essential goods is a win for consumers and win for hardworking families and taxpayers of this country.”

Kiernan Bell, a Governor-appointed senator, and Ben Smith, of the One Bermuda Alliance, asked about whether the zero duty rate on feminine hygiene products would be made permanent.

Ms Hodgson said: “It will extend until there is a time where we indicate that it will no longer be extended.”

The Payroll Tax Amendment and Validation (No 2) Act 2022 was designed to make sure that certain gratuities received by employees are not subject to payroll tax.

Ms Hodgson said: “This change is intended to eliminate uncertainty in the hospitality industry in relation to customer gratuities or tips, as we so often say.“

She told senators that tips provided a “much needed boost” to hospitality workers.

Ms Hodgson said: “As this part of an employee’s income is provided by the customer, it is not considered part of the employer’s payroll for tax purposes and should not be treated as such.

“While this is generally the approach taken by employers for most customer gratuities, some employers in the hospitality sector have treated automatic gratuities as subject to payroll tax, while others have correctly excluded them.”

The Stamp Duties Amendment Act 2022 will mean that first-time buyers can purchase a home without having to pay the levy up front. Previously they had to live in the property for three years before they qualified.

John Wight, a Governor-appointed senator who supported the Bill, said: “I can understand the logic; it’s great to provide relief to Bermudians who are owning and occupying their own homes.

“My own personal view is there is less of a need to provide relief to Bermudians who are looking at this as a business venture to rent their properties out.”

Ms Hodgson responded: “The Government is trying to encourage home ownership regardless of what that looks like and so by extending or expanding the benefit we are hoping that more persons are able to benefit. That’s the short answer, of course.”

The three Bills were passed earlier in the House of Assembly and approved by senators today.