Members of Parliament have approved legislation to slash the base rate of land tax and end the employee portion of payroll tax on redundancy payments.

Wayne Furbert, the Junior Minister of Finance, said the Land Tax Amendment Act 2025 would halve the base land tax from $300 to $150 effective January 1, 2026.

Mr Furbert said the measure was intended to help ease economic pressures on landowners and tenants, noting that some landlords passed along land tax to those who rented their properties.

Douglas De Couto, the Shadow Minister of Finance, said the Opposition supported the legislation but questioned if more targeted relief measures might be able to better support those in need.

He said that by not reducing land tax for more valuable properties, the rates for properties that fall below the rent control threshold could be reduced by even more.

“I would submit to you that there is probably a line of annual rental values where this break will not impact people that much, whereas underneath that line people would have enjoyed and benefited from a larger break,” he said.

Diallo Rabain, the Minister of the Cabinet Office and Digital Innovation, said that the Government had already implemented changes to land tax bands to give relief to lower valued units.

“This once again is tax relief that people will greatly appreciate,” he said. “I know that when I go out to canvass we have a lot of landowners and we have people who rent and a lot of houses under that ARV threshold.”

The House also approved amendments to exempt the employee portion of payroll tax on remuneration given in connection with the permanent termination of employment.

Launching the debate on the Payroll Tax Amendment Act 2025, Mr Furbert said the measure was intended to support those faced with the loss of a job during a “critical period of transition”.

Dr De Couto expressed the OBA’s full support of the amendments, describing it as a “well targeted” piece of legislation.

David Burt, the Premier, said that he had been approached by someone during the Bermuda Day Parade who asked him why he was charged payroll tax on redundancy payments.

He added“ “The Bill before us today is what responsive and responsible government looks like.

“This was not something that was inside the 2017 or 2020 election manifesto, but it was something that was raised from a constituent to one of our political colleagues and it is something which we have added into our programme of work.”

Renée Ming, MP for St George’s North, said: “Those persons who have felt this will be pleased, because there is nothing worse than kicking a horse that is already down.

“This is good work and I am sure it will be appreciated.”