Residents coming back from overseas can avail of a significantly higher duty exemption on goods purchased abroad from July 1 — while taxes are to be slashed on products ranging from fuel for generating electricity to hospital supplies, construction materials and imported motor vehicle parts.

The latest tax breaks will deliver new opportunities for the island’s economic development, the Junior Minister of Finance told the House of Assembly.

Wayne Furbert added that the Customs Tariff Amendment Act 2025 would ease the “daily burden of making ends meet” as the Government moves ahead on alleviating the island’s cost of living.

The Bill, which amends the Customs Tariff Act 1970, will see an increase in tax exemption for returning travellers from $200 to $300 per person.

The 50 per cent uplift to the rate allowance was its first change since 2012.

Mr Furbert said that based on previous years’ travel figures the collective tax burden on travellers would drop an estimated $2 million.

The Bill’s impact on Belco operations, combined with the 60 per cent slash in customs duty on fuel for energy last year, would result in an 80 per cent reduction in the tax since 2023.

Mr Furbert said last year’s cut had brought fuel down to eight cents per litre and the new measures would cut it to four cents per litre.

He added: “While there is more to be done across the energy sector, this initiative ensures that tax policy supports lower electricity costs for every household and business in Bermuda.”

The Bill eliminates the duty on hospital operating supplies, and lowers the duty rate on air conditioning units and parts.

Douglas De Couto, the Shadow Minister of Finance, signalled the Opposition’s support.

However he said time constraints meant One Bermuda Alliance MPs were unable to “fully investigate all of the things on the paper in black and white”.

Dr De Couto added: “We will take the Government’s statement at face value, in good faith and in the spirit of collaboration.”

David Burt, the Premier and Minister of Finance, responded that the Bill had been tabled under House requirements and met the requisite time frame to go before lawmakers.

Dr De Couto suggested the Government could have considered further cuts on building materials duties down to zero for projects such as rent control units — which was backed by Michael Fahy, the Shadow Minister for Municipalities and Housing and Home Affairs.

Dr De Couto commended the tax cuts for the Bermuda Hospitals Board, which he noted were an “excellent example of providing a targeted relief to an area where we know the costs are becoming prohibitive and burdensome”.

Mr Burt said the Bill combined several measures presented in the Budget Statement — one of “a number of Bills to accomplish the reduction in taxes that is in excess of $45 million”.

Jason Hayward, the Minister of Economy and Labour, said that increasing duty-free limits at the airport had received pushback from the OBA, but other measures were in train to support retailers.

He said: “I know that my residents, my constituents, will be happy to take advantage of greater relief when they are travelling back from abroad.”

Mr Hayward said the economy was growing, government finances were stable and the ratings agency Standard and Poor’s continued to endorse the island.

He told the House: “Bermuda continues to be a high-performance jurisdiction. We continue to punch above our weight level in a number of areas.”

Scott Pearman, the Shadow Attorney-General, recommended wording tariff legislation in language easier for the general public to understand, including an extra column showing existing duty rates alongside what they would become.

He added: “You shouldn’t have to be a lawyer to look at a Bill we pass and understand it.”

Mr Pearman said that while the Opposition supported the changes, more targeted support could go to those most in need.

Craig Cannonier, the Shadow Minister of Public Works and Environment, said the breaks would help but cashflow remained a challenge and economic recovery needed to be accelerated.

Mr Furbert responded that the Opposition would never be satisfied by the Government’s work — but that the breaks would be felt across the public.

He added: “This Government will continue to deliver real results for the people of Bermuda.”

• To read the Act, see related media

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