Government's extension of the exemption from local corporate taxes for international business until 2035 reflects the value Premier Paula Cox puts on international business, according to one of Bermuda's top business leaders.

Plans to introduce a bill to extend the Exempted Tax Certificate, which is due to expire in 2016, were unveiled in the Premier's first Throne Speech delivered yesterday.

The Island's business community has welcomed the extension, which was announced along with a raft of new proposals detailed in the speech.

Included among them was a complete overhaul of the Bermuda Immigration and Protection Act 1956 and the introduction of an Equal Pay Act.

David Ezekiel, chairman of the Association of Bermuda International Companies (ABIC), said that the extension was the number one concern expressed by ABIC members surveyed last month. He said it would provide a boost to businesses considering a move to Bermuda.

"The announcement of the tax exemption extension is a perfect way for the Premier to signal the value she places on international business," he said.

"In an October survey of our members, the extension was listed as the number one concern/priority for our members by some distance with over 90 percent rating it as such. The extension is not only good for companies already domiciled here, but is perhaps even more important for companies considering Bermuda as a domicile.

"2016 will soon be figuring in their five-year business plans, making this an opportune moment to remove that uncertainty."

Stephen Todd, president of the Bermuda Chamber of Commerce, said that all three of the proposals were critical to the Island's future direction.

Mr. Todd said that the tax protection regime extension was a positive step and would be welcomed by the international business sector, particularly as it removed the doubt over Government's commitment to the industry.

He added that the reform of the Immigration Act needs to reflect the current climate and the direction Bermuda should be moving in as an international business domicile. And he applauded the introduction of an Equal Pay Act, describing it as "long overdue" and eliminating any pay disparity between men and women.

"Premier Cox is seeking to level the playing field and her administration will be looking to provide the opportunities to everyone in the community to move forward in a more positive manner," Mr. Todd.

Cheryl Packwood, CEO of Business Bermuda, said the Exempted Tax Certificate extension would enable the Island to be more competitive in bringing in new business and that the overhaul of the Immigration Act was much needed due to the issues faced with the current policy.

"We are pleased at the extension of the tax protection regime from 2016 to 2035," she said.

"This decision makes Bermuda fully competitive among the international financial centres for attracting business to our shores. Our member companies have been working with the Ministry of Finance on this issue for a number of years.

"We look forward to seeing the details on a wholesale overhaul of the Bermuda Immigration and Protection Act 1956. This measure is long overdue in light of the challenges the government and community has had with current immigration policy.

"The world has undergone a great deal of change in the past 50 plus years and the movement of people and populations is much a part of that change. We stand ready to work with the Bermuda Government and Minister Kim Wilson, in particular, on producing legislation and policy in this area which can only enhance Bermuda as a destination for international business but protects her people and our combined interests."

Martin Law, executive director of the Bermuda Employers' Council, said that the extension of the tax protection regime would provide businesses with a level of reassurance about their long-term tax status and backed the signal of intent to improve the economy sent out through the formation of a Ministry of Economy, Trade and Industry.

"We appreciate the emphasis on accountability and oversight in the area of public service delivery and the commitment to cut government spending," he said. "Strengthening the office of the Auditor General is also a welcome move.

"The prominence given to the new Ministry of Economy, Trade and Industry is also welcome as is the clear statement that improving the economy is its core function.

"We look forward to working with the Minister and her team on many levels and particularly in helping define industry needs when questions of fairness arise from job seekers when work permits are involved. In a difficult economy there will be a need for great understanding all round here.

"International business remains the driver of our economy and the decision to extend the tax protection regime out to 2035 is very welcome. Businesses need to have some comfort with their long-term tax status so this will be well received."

Michael Fahy, spokesman for finance at the Bermuda Democratic Alliance (BDA), echoed his sentiments.

"This will give some comfort to international business during the global economic downturn and will assist in long-term planning for international business," he said.

"The BDA and the Chamber of Commerce have proposed that this exemption be extended so we are pleased that the Government has included this."

But Mr. Fahy called for Government to change the import duty system for retailers to make duty payable at the point of sale as a minimum to aid the struggling sector and to decentralise Government offices and relocate various civil service departments to the east and west ends in order to boost those local economies.

He also urged Government to implement a low income payroll tax bracket for businesses with employees making an annual salary of $50,000 or less, with a reduced percentage tax on both the employee and employer, to review the potential for worker co-operatives, and to expand the influence and authority of the Bermuda First initiative as an incentive to international business and to attract and retain such business within its shores.

Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), said: "The Throne Speech demonstrates the new Government's resolve to set a course for fiscal prudence and accountability; and a recognition of the continued need to address the social issues that Bermuda faces during these challenging economic times.

"In addition, the readiness of the administration to conduct reviews and consider reform to key policy areas like immigration and labour is encouraging."

Shadow Finance Minister Bob Richards commended the extension to the tax protection regime and said it would help to reduce some of the uncertainty among international businesses.

But he added that the overhaul of the Immigration Act would only be of any use to the sector if it focused on term limits.