The Bermuda Chamber of Commerce is hoping to see a review of the sugar tax in the Throne Speech tomorrow, which officials say could be causing more problems than it solves.

Marico Thomas, chamber president and FoodHub restaurateur, said: “It is time that its overall effectiveness is critically reviewed to determine whether it is serving the original intent. The chamber is still of a belief that the sugar tax, as it currently stands, may do more harm to the cost of living than good in promoting healthy lifestyles.”

In 2018, the tax was put on imported sugar-sweetened beverages, confectionery and other sweet products, while import duties on select healthy food items were eliminated in an attempt to curb Bermuda’s sky-high levels of lifestyle-related diseases such as diabetes type 2.

The chamber boss said if the tax revenue was directed towards subsidising healthy products such as home-grown food, or to specific health programmes, there would be an argument for retaining the tax.

“From most accounts, it has been a challenge to implement, and appears to just pay into the consolidated fund as any other tax income,” he said. “As a result, the net benefits are not clear.

“Given the food price hikes, this is potentially fuelling food price inflation.”

He said local restaurants have seen significant cost increases for food since the Covid-19 pandemic in March 2020.

“Many have been unable to make adjustments, which has contributed to a negative impact on business overall, and in some cases, their viability,” Mr Thomas said.

The chamber was also awaiting updates on a number of points addressed in last year’s Throne Speech including the minimum Corporate Income Tax, according to a statement.

A 15 per cent tax will be applicable to Bermuda businesses that are part of multinational enterprises with annual revenue of €750 million (about $800 million) or more.

Mr Thomas said in the statement: “With the introduction of this tax, we await the updates of the Ministry of Finance and the Tax Reform Commission on how the landscape of government income sources will potentially change in the near future, and what the public and business can expect to see.”

The statement also addressed last year’s Throne Speech promise of full membership in Caricom.

The chamber said there has been little information provided to the general public on the overall costs and benefits from entering the Caricom market.

The business organisation would also like a status report on:

• the economic development strategy towards growing the resident population

• plans to accommodate the expanding number of seniors

• plans to develop a sustainable housing supply

• the strategy for Morgan’s Point, informed by lessons from other large-scale publicly funded projects