The Minister of Finance has delivered a 2019-20 Budget Statement that strives to address the concerns of many stakeholders. It’s a delicate balance, and for that he is to be congratulated. After the Tax Reform Commission’s Report and the Pre-Budget Report, Bermuda’s business community had concerns about potential punitive new taxes and increases to existing taxes that were being considered. Overall, this Budget has allayed those fears.

Growing the economy is job number one and we applaud the Minister for presenting a 2019-20 Budget that seems to steer clear of stalling the economy by increasing taxes on many businesses that can ill afford to pay more. The Budget presented an accurate view of the considerable local and global risks that the Ministry had to take into account. With international business being a primary driver of the economy and a large employer of Bermudians, being considered a non-co-operative tax jurisdiction is not an option that Bermuda can risk taking — Bermudian jobs would be lost for certain.

As the Minister underscored, the $2.5 billion Government debt is a huge concern that cannot be ignored. At the same time, the primary objective for 2019-20 has to be growing the economy. Government wisely decided that this is not the year to impose a greater tax burden on the current taxpayers. Diversifying the economy has been Bermuda’s biggest challenge for many years. It remains to be seen whether Bermuda’s economy will grow or contract from 2019 through 2020, however it is pleasing to see at the outset a Budget that provides tax incentives for new businesses to employ people.

Every organisation in Bermuda, where private or public, should be striving to improve fairness, efficiency and effectiveness on a continual basis. In this regard, Members of the Chamber welcome the Minister’s statement that Government will be launching a public service reform initiative. In addition, the Minister should be applauded for this year’s Budget taking steps to address the outstanding collection of debts owed to Government, and implementing controls to ensure that taxes in the future are paid on time. This issue of non- payment of required taxes has been a source of concern for the majority of taxpayers who comply with the rules and regulations.

Budgets are only as good as the accuracy of the assumptions and projections underlying them but if, this time next year, the Minister can report the budget surplus of $7.4 million that he is estimating for 2019-20, the Chamber will be greatly encouraged.

John Wight is president of the Bermuda Chamber of Commerce