Finance Minister Bob Richards *Photo by Kageaki Smith
Finance Minister Bob Richards *Photo by Kageaki Smith

Deloitte Budget Snapshot 2013
A New Direction



“This budget marks the beginning of a new direction for the manner in which the economy of Bermuda and the finances of the Bermuda Government are managed.” – The Hon. E.T. Richards, JP, MP, Minister of Finance


Government of Bermuda Summary of Consolidated Fund Estimates for 2013/14 (in thousands)

 Actual 2011/12


Original Estimate 2012/13

Revised Estimate 2012/13

Estimate 2013/14







Current Account Expenditure (excl. debt & s/fund)





Interest on debt





Sinking Fund Contribution





Capital Expenditure





Budget Deficit




Public Debt
The statutory debt ceiling will be raised from $1.45 billion to $2.5 billion.

Payroll Taxes 
There will be a 2 year payroll tax holiday for new Bermudian hiring.
Payroll tax concessions for the hotel, restaurant and retail sectors will be extended.

Licence Fees
License fees for non-Bermudians will be reduced from 25% to 8% for purchasing Bermuda homes, from 18% to 6% for purchasing condominiums, and for Permanent Resident’s Certificate holders, license fees will be reduced to 4%.

Duty on cigarettes, tobacco, beer, wines & other spirits will be increased.

Land tax
There will be an increase in rates on ARV bands higher than $90,000.

Vehicle License Fees
There will be an increase of 3% on all vehicles.
There will be a continuation of exemption for vehicles for seniors in Classes A to D, revoking exemption for E to H.

Corporate Services Tax
The Corporate Service Tax Rate will be raised from 4% to 6%.

Government will also formally commence negotiations with the relevant unions regarding reduction in staff compensation.
There will be an increase in funding for police and prison services.