MPs pass Bill cutting customs duty on range of items
David Burt outlined plans in Parliament to eliminate duty to assist nurseries and community clubs.
The Premier and Minister of Finance said the Customs Tariff Amendment (No 2) Bill will provide customs duty relief for those in the categories looking to upgrade their facilities.
Mr Burt said: “As a government, we appreciate the critical role these organisations play in the development of our children and the strengthening of our community, and with these duty relief initiatives, the Government is proud to support them in their efforts.”
The legislation, passed by MPs, also proposes duty-free importation of asphalt so the private sector can assist in major road works that are due to commence when trenching works are completed.
Mr Burt said: “This will permit duty relief savings on aggregate imports for asphalt and those savings will be passed on to the Department of Works and Engineering in the construction of public roads.”
Lieutenant-Colonel David Burch, the Minister of Public Works, welcomed the news and said he would be making a statement next week about a plan being formed for repaving.
He said: “We are looking at ways in which we can add to the funding that was provided in this year’s budget for road paving and delay some of the other works that we are doing in the Department of Works and Engineering.
“I get it, I drive on the roads. You know that the roads are in a state so you drive accordingly.”
He said improving the roads is the number one priority of his ministry.
The Bermuda Hospitals Board will also benefit from customs duty exemptions to enable it to allocate more resources for its healthcare services.
Mr Burt added: “The Progressive Labour Party government is committed to providing relief for the people of Bermuda during these unprecedented times.
“We recently revised the sugar tax so that items containing minimal amounts of sugar are no longer subject to the sugar tax, eliminated customs duty on all school uniforms and uniforms for international-level sports teams and also ensured that businesses within the personal care and fitness sector are exempt from duty when looking to make capital upgrades.
“We are proud to have partnered with major local grocers to ensure 21 essential goods received at least a 10 per cent price reduction. This legislation further demonstrates our commitment to do more.”
The Bill also amended the duty rate for personal loose tobacco imported by travellers.
“The Bill proposes to amend the first schedule to be afforded to travellers with personal goods from 35 per cent of the value to $500 per kilogram,” Mr Burt said.
Cole Simons, Leader of the Opposition, questioned why the same relief was not afforded to local tobacco business The Smoke Shop.
Mr Simons said: “We have a local business that is being entrepreneurial and they can provide competition to the cigarette market. They have worked with the Government with regards to getting concessions on their manufacturing company which employs eight or nine people.
“Consideration should be given to working with the local entrepreneurs in the tobacco space to ensure that they are successful. Let’s extend this to this cigarette manufacturing company.”
Mr Burt suggested that the One Bermuda Alliance was making a point on behalf of the Gibbons family who he said owns a tobacco manufacturer.
Mr Simons said the Premier was impugning improper motive.
Mr Burt said: I am not saying that the honourable member is being paid by this company, we understand the links between the Gibbons family and the OBA, it is well laid out.
“I get the point the Opposition Leader is making but … before there is any further consideration of further relief we have asked the company to supply audited financial statements.”