Reducing economic barriers among FDM’s plans
The Free Democratic Movement has floated an economic plan to lower costs and reduce barriers to the island’s economy.
The party said its economic policy framework will shape a vibrant economy where Bermudians will be able to excel as innovators, entrepreneurs and leaders.
It said its goal is to: “Build an interdependent Bermuda by reducing debt, empowering Bermudians, cultivating private sector growth and addressing the high cost of living.
“Economics is about more than money, it’s about people.
“Our goal is to encourage healthy competition, starting locally, expanding regionally, and ultimately positioning Bermuda as a standout on the global stage.”
The party said within a year, if elected, it will adjust customs duties to a flat rate of 15 per cent for items taxed above this level, resulting a reduction of household expenses.
A plan to lower payroll tax rates to increase take-home pay for Bermudians and provide relief for businesses is also on the cards and the party also intends to further reduce customs duties for registered businesses.
“Combined with payroll tax reforms, these measures will reduce operational costs,” the party said.
It plans to set aside 80 per cent of realised corporate income tax revenue in a dedicated account for five years and the funds will be utilised exclusively for debt retirement.
The FDM said: “This approach allows for insight into how the tax operates and ensures prudent budgeting, by accounting for technicalities like deferred tax assets.”
In the short term, the party committed to running a budget surplus to improve fiscal stability within a three-year period.
Part of its medium-term plan is to replace the Bermuda Tourism Authority with a privately funded Tourism Stakeholders Council.
It said the body will be led by private sector leaders, with the aim of driving marketing and innovation without reliance on government funding.
It also intends to promote the development and export of Bermudian-produced products,.
Marketing of the items —such as alcohol, honey and spices — will be tied to the island’s tourism identity and duties will be refunded on raw materials used in their production.
Establishment of a “robust” casino industry, legalising the licensed domestic production of cannabis for personal use and expansion of the offshore fishing industry are also among the party’s medium-term plans.
In the long term, the party said it intends to transition 50 per cent of publicly funded entities to performance-based funding and these would see the tying of resource allocation to measurable outcome.
It also intends to wipe the island’s audit backlog, which it said the Auditor-General estimated to be at 131 years in 2022.
Among its plans for the electorate are the capping of customs duties, streamlining regulations and reducing costs for imports.
This will put more money back into household budgets, the party said.
• To view the Free Democratic Movement’s economic policy, see Related Media
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