Bermuda’s Ministry of Finance announces payroll tax cuts and BMD 19.5 million in additional spending

Bermuda’s Ministry of Finance published its fiscal year 2026/27 midyear review, announcing further tax reductions and BMD 19.5 million in additional spending alongside an improved surplus forecast. In the statement to the House of Assembly, Premier and Minister of Finance E. David Burt outlined a projected budget surplus of BMD 520 million, BMD 47.3 million above the original estimate. Revenue is forecast at BMD 2.09 billion, BMD 61.9 million above budget, principally reflecting higher corporate income tax and payroll tax receipts. From Jan. 1, 2027, payroll taxes will fall for every worker, reducing annual tax bills by up to BMD 1,560. Employer payroll tax rates will fall by 0.5 percentage points across all categories, with further concessions for takeaway food establishments, registered trade unions and licensed credit unions. Sporting and social clubs will receive land tax exemptions. Also from Jan. 1, customs duty on private cars will fall to 50% on the first BMD 20,000 of value, reducing import duties by up to BMD 12,500. The additional spending includes BMD 2.8 million for healthcare, supporting a mobile clinic, overseas treatment assistance and equipment upgrades. Allocations of BMD 2.5 million for solar installations in Bermuda Housing Corporation homes and BMD 1.95 million to expand the balcony solar programme are intended to reduce household electricity costs. Further funding will support education, social services, public safety and justice programmes.