January 30, 2013 at 5:54 p.m.
Tough times: Pre-Budget economic reckoning
Tax issues high on Budget wish list
And President Stephen Todd said it is important that Government keeps its promise of cutting $150million from the Budget.
But he said the February 11 statement also needed to stimulate business growth.
“This is a critical Budget — probably one of the most significant in recent history. Given the position of the country and the worldwide economy at this time, it is important that we get it right.”
He said the Chamber had compiled a budget wish list of measures the Government could take:
Don’t increase taxes
Last year’s increase in payroll tax did not increase Government’s overall revenue, says Mr. Todd. He believes it hastened job losses and made Bermuda a less attractive place to do business.
The Chamber believes Government could stop the rot by rolling back payroll tax to pre-2010 levels.
A tax holiday for new and expanding businesses
Businesses that commit to taking on new staff as well as start-up businesses could be offered a one-year break from payroll tax on their new employees.
The Chamber believes this would help encourage new business and provide an incentive for others to grow.
Regular, up-to-date statistics on the economy
The Chamber would like to see a commitment from Government to provide information on unemployment and other ‘economic health’ indicators more quickly and efficiently.
Use a ‘business model’ to run Government
Government could adopt the approach that successful businesses take in difficult times, says Mr. Todd.
He said postponing or eradicating unnecessary programmes and reducing discretionary spending on overseas conferences and training courses, would be a good start.
Collect revenue more quickly and efficiently
From unpaid taxes to parking tickets Government could increase its cashflow by collecting revenue more quickly.
Reconsider real estate
Stimulate the housing market by refusing to raise stamp duty on real estate transactions, lowering the licensing fee for foreigners to buy homes, rethinking the law limiting property ownership for Bermudians with foreign spouses and lifting restrictions on Permanent Residency Certificate holders buying from Bermudians.
Duty relief for retailers
Extend exemptions on duty for refurbishing businesses beyond the current March 2011 deadline and reduce duty for retailers to the same level as for consumers.
Mr Todd said the rates were currently higher for a business like Brown and Co to bring in stock than for a regular shopper.
Support hotels and international business
The survival and expansion of hotels and IB are critical to Bermuda and any incentives to make life easier in these key industries would be encouraged by the chamber.
The Chamber of Commerce represents 700 businesses across all sectors of the economy.
Special report: Tough times
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