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OBA criticises passage of ‘half-baked’ tax cuts legislation

Craig Cannonier, the Shadow Minister of Public Works and Environment, with Marcus Jones, the Opposition Leader in the Senate (Photograph by Akil Simmons)

The One Bermuda Alliance has criticised the passage of tax cuts legislation in the Senate this week, citing limited consultation.

Craig Cannonier, the Shadow Minister of Public Works and Environment, said while the Opposition supported the intent of the Customs Tariff Amendment Act 2025, it had been given little time for a healthy debate.

The legislation was debated and passed in the Lower House on May 30.

It enables tax cuts on diverse products ranging from fuel for generating electricity to construction materials and imported motor vehicle parts.

It also eliminates the duty on hospital operating supplies and lowers the duty rate on air-conditioning units and parts.

Under the legislation, which amends the 1970 Act, residents coming back from overseas will get a significantly higher duty exemption on goods purchased abroad from July 1 — from $200 to $300 per person, the first change since 2012.

Mr Cannonier said upon reviewing the Bill, which had been presented to MPs on May 26, “it was evident that more information was required to fully understand what items were being targeted”.

He said: “After several attempts for clarity and additional information, it was only provided the same day the Bill was to be debated.

“That's unfortunate and not worthy of healthy debate, especially knowing it was over 450 items to review.

“Additionally, it is vexing to find out the same information we were requesting and only received the day of the debate was provided to others the day they tabled the Bill.”

He accused the Government of failing to consult enough relevant stakeholders and said it had “presented a half-baked Bill”.

He added: “Plumbers and electricians have been left without tools for their sites.

“No house passes planning requirements without plumbers and electricians, but this is the house that our government has built.”

During the debate of the legislation yesterday in the Upper House, Marcus Jones, the Opposition Leader in the Senate, said any measure taken to bring relief to the construction industry would get support.

However, he pointed out that electrical and plumbing parts did not appear to receive tariff reductions.

At the request for answers from Mr Jones, the Senate dissolved in committee to address aspects of the legislation.

However, Crystal Caesar, the Minister of Education, informed the committee that the legislation was a money Bill — meaning the committee could not amend it.

It was passed after a vote.

Today, Mr Jones alleged that government senators had blocked further discussions on potential amendments to broaden the opportunity for relief within the construction sector.

He added: “The OBA supports the intent of this legislation, but is disappointed that certain sectors within the construction industry were left out.”

Mr Cannonier said the OBA planned to propose further amendments to the customs tariff legislation.

Wayne Furbert, the Junior Minister of Finance, responded that the Constitution stated that the Senate cannot proceed upon any amendment to a financial Bill.

“While the Opposition requested additional clarity, it is important to note that nothing was hidden or done any differently than any other time that customs duties have been changed,” he said.

“Further, the Government provided the Opposition with an additional breakdown of the significant duty reductions as they requested.”

"Further, Mr Cannonier’s claims that the duty reductions have excluded electricians and plumbers are again factually incorrect.“

Mr Furbert said the claim that the duty reductions excluded electricians and plumbers was not correct as the legislation reduced duty on a variety of materials used in the trades to 10 per cent.

"The only major category not included in this reduction was electrically insulated wire, which remains at 25 per cent,“ he said. “However, customs data shows that most of these imports were already duty-exempt through end-use relief programmes.

"Of the $360,000 of imports in this category last fiscal year, only $103,000 was dutiable, resulting in just $19,000 in duty collected. By contrast, the materials covered by the duty cut represent a much more significant share of imports.“

Mr Furbert said that if additional changes are required, the Government will make them, adding that it is focused on not only reducing taxes and duty rates but ensuring the savings are passed on to the public.

“Our priority going forward is to work with stakeholders to ensure that the benefits of this customs duty relief are not absorbed into private sector profits but are reflected in lower prices for Bermudian consumers,” he said.

"We encourage the Opposition to learn and understand the legislative process and engage with integrity and facts, not distortions.

“In the future, if the OBA wishes to recommend further changes, an e-mail will suffice, not a hastily called press conference at which they are wrong on the facts, damaging the little credibility they have left."

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Published June 06, 2025 at 1:16 pm (Updated June 06, 2025 at 9:48 pm)

OBA criticises passage of ‘half-baked’ tax cuts legislation

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