The Government is seeking feedback on its fiscal aims and objectives, its update on the Bermuda economy, and, on its summary of policies under consideration for the coming fiscal year.

David Burt, the Premier and finance minister, is prepared to engage the public and stakeholders in the new year for a discussion on the upcoming Budget, including a deadline for submitted comments on January 17 to the just-released Pre-Budget Report.

The statement said the Government is not planning any major changes to its existing tax system for this upcoming fiscal year, save a few revenue items under consideration.

Policy initiatives being considered include the ending of a six-year tax holiday from payroll tax for new exempted companies.

The Pre-Budget Report said it has cost the Government $300 million in untaxed remuneration since the policy began.

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Any new exempted company started after 2018 has not had any employer payroll tax liability, the report said.

The new hire relief policy has been in place since 2018 with the intent of assessing the relief every two years.

As a result of the pandemic, the Government decided to allow the relief to roll over in 2020 so the relief period covered four years.

In 2022, a further two year extension was made; however, the baseline year remained in 2018, meaning the relief was in effect for six years.

The report said: “Given the significant amount of payroll not subject to tax, the Government is considering allowing this new hire relief to expire, or is considering adjusting the baseline year to reflect new hires since 2020 or 2022.”

But the Government may grant a further reduction of employer payroll tax to that which already exists for the hospitality industry.

It has been suggested that a further reduction would provide needed relief until tourism figures reach pre-pandemic levels.

An additional proposal is to consider increasing the licensing fees for larger boats — 35 feet or more — which are used recreationally.

The submission suggested that vessels with a commercial licence would not be subject to this increase.

Targeted tax relief also includes the potential for a reduction of immigration fees for work-permit applications back to pre-pandemic levels, while the Government continues to develop and implement its automated system.

The Government has been asked to consider further reduction of land taxes to provide additional capacity for property owners to develop their property.

Further, there have been submissions to the Ministry of Finance that because of rising costs, the Government should consider expanding the list of essential goods that incur duty relief.

The report said: “The Cost of Living Commission will also be tasked with identifying additional essential commodities to be added to the schedule of its Act, thereby reducing customs duty that may provide price reductions of those goods to the consumer.”

Major items that will affect spending considerations in advance of the 2024-25 budget include paying for what is needed for the successful execution of Bermuda’s Economic Development Strategy.

In addition, the Government needs to strengthen its online security posture through significantly increased capital investments in IT infrastructure to reduce the likelihood of future incidents, such as that experienced in the September 2023 cyberattack that caused significant disruption to government IT systems.

After years of underinvestment in Bermuda’s infrastructure, which has resulted in less-than-ideal conditions for Bermuda’s roads, beaches and Railway Trail, the Government has planned $95 million for investment in infrastructure over the next fiscal year, and will spend more if the funds are available.

There will also be a continuation of investment in affordable housing and the creation of additional facilities for senior citizens, freeing up hospital space.

• To read and respond to the Pre-Budget Report, see Related Media