Government’s payroll tax holiday for new Bermudian hires was approved by parliament last night but not before the Opposition decried the proposal as half baked, while applauding the Government for keeping an election promise.As of April 1, employers will not pay payroll tax on new Bermudian hires for a period of two years.But employers will not be allowed the relief if they already owe payroll taxes to Government, unless there is a payment plan in place.A number of conditions would prevent employers from gaming the scheme.It will not apply to employees on a company’s payroll between now and April 1.And Government agreed to amend their original proposal, as suggested by the Opposition in its Budget Reply, to specify that only employees who had been unemployed for at least three months prior to being hired will be included in the scheme.But Government rejected an Opposition suggestion that the tax holiday be extended to the employees.Shadow Finance Minister David Burt said that while his party supported the intent of the legislation, it was not convinced that it would increase employment. The prospect of a payroll tax holiday is unlikely to motivate struggling employers to hire additional employees, he said.Shadow Tourism Minister Wayne Furbert pointed out that the three-month unemployment requirement could discriminate against those who were unemployed for less than three months.“The Government had to set criteria — three months is the criteria,” replied Finance Minister Bob Richards.Opposition MPs questioned whether the measure would have a practical impact.“The effort for effort’s sake gets double A-plus. But what is the practical consequence?” asked Devonshire North Central MP Glenn Blakeney.And he questioned how the Government would prevent people gaming the system by, for example, changing a person’s job title.He suggested that the incentive could be given to employers who replace work permit holders with locals.Opposition Leader Marc Bean agreed that there might be an impact on job creation but suggested that the payroll tax relief be extended to the employee as well.“We’re looking at it more from a holistic perspective. We acknowledge the fact that it could be a boost to employers.”But Mr Bean went on to say that the Government had sent mixed messages by giving businesses tax relief while increasing corporate services tax.Businesses and the media had not criticised the Government, he added.“This amendment is pro business and pro labour,” Mr Bean continued. “If it’s beneficial to business, then let’s take the further step and make it beneficial to labour. It might be a revenue reduction but the long-term stimulus to the economy might be more.”Deputy Speaker Suzanne Holshouser said extending the payroll tax relief to new employees may not be fair to their colleagues who were already in the workforce.Mr Richards concluded the debate by saying that Government aimed to stimulate the economy without increasing the deficit.“This measure will at the very least be revenue neutral,” he said. Giving the tax break to the employee “will definitely increase the deficit”.And in response to an argument by Shadow Tourism Minister Wayne Furbert that tax concessions in the hotel sector had not created jobs, Mr Richards said the current proposal was conditioned on job creation.And the Tax Commissioner’s office will ensure that companies do not game the system, the Finance Minister said.