Budget 2023-2024

Bermuda’s Economy is Growing

• 3.4% – 3.9% GDP growth projected in 2022

Growth in Employment

• 402 New Jobs Created

International Business is Expanding

• 230 new jobs in 2022 (119 new positions filled by Bermudians)
• 812 new companies formed in 2022
• 2021 saw strongest IB growth in 15 years
• 591 IB jobs created since 2019

Tourism is Rebounding

• Air Visitor Spending doubled in 2022
• Record cruise season in 2023

Business Taxes

• No businesses will see their taxes increase this year
• Businesses will see their payroll tax liability reduced by as much as 43%
• Self employed farmers & fishermen will be exempt from employer payroll taxes
• Employers will be exempt from paying payroll tax to employees on maternity/paternity leave

Employee Taxes

• Workers making less than $132,000 annually will pay less payroll tax than last year
• Since 2017, workers earning $48,000 have paid a combined $6,960 less in payroll tax

• Cabinet has approved site to be converted with 101 residential units planned for phase 1.
• Residential units will range from entry level to high end, with seniors housing to be added in phase 2
• Redevelopment centered around an amenity village with restaurants & retail

• Current year revenue up 7.2% - Achieved with no tax increases & relief in customs duty for essential goods and fuel duty to freeze fuel prices.
• Deficit projected to fall to $43 million this year, and still on path for a balanced budget next year
• $50 million of debt to be repaid this year, the first debt repayment in 9 years causing interest costs to fall by $2.4 Million.

• Increased funds to repave roads
• $5.5 million allocated to renovate and equip 2 new parish primary schools: Francis Patton and Purvis Primary
• New health clinic to open in Somerset
• Additional affordable housing to be constructed
• 40 electric buses, refit of fast ferries
• New vehicles for fire, police and corrections

• Social insurance benefits will increase by the rate of inflation this year
• Additional funds for the Hospital • Increased child daycare allowances for parents
• Transitional living for young persons ageing out of care
• Increased funding for care homes • Reintroduction of public health scholarships
• Air-quality monitoring for those affected by BELCO emissions
• Expanding social protections for families via financial assistance

Land Tax Changes

• Land tax to increase on properties with ARV higher than $90,000, which affects 4% of properties in Bermuda

Some Exisitng Fees to increase •

• Increase by 5%: Stamp duty, Trademark fees, Fines, Solid waste dumping fees, Planning fees, Shipping fees, Work Permit & PRC fees
• Increase in court fees

New Fees

• Vacation Rental Registration fee
• Regulatory fee for companies
• A fee for complex PATI requests

• Sugar Tax Reform: Items that may have a small amount of added sugar such as: Nutritional bars, low-sugar drinks, Non-dairy creamers will be reduced.
• Personal care & Fitness companies to be exempt from customs duty for upgrades to their business
• Elimination of duty for school uniforms & import of aggregate

• New restrictions on businesses, individuals and landowners who are not current with their tax obligations or their tax payment plans.
• These restrictions can include denial of contracts, grants, permits, licences or other government authorisations.

• More Bermudians able to take advantage of lower interest rates
• Age restriction removed - Open to any Bermudian purchasing a first home
• Public Officers will be eligible to transfer their mortgage