Proposed cuts on land tax and vehicle licensing will not take effect until 2026
Image: Bermuda Broadcasting understand Premier & Finance Minister David Burt will announce a delay to some of the proposed tax cuts (file photo)
Ahead of tomorrow’s Budget, the Finance Ministry has advised that the Government will not immediately follow through on some of the Pre-Budget proposals.
A number of tax reductions laid out in Pre-Budget Report were expected to come into effect on the 1st of April this year.
However, Bermuda Broadcasting understands that some will be delayed.
Government will reduce the base rate of land tax from $300 per year to $150 taking effect from January 1st 2026.
There will also be a 10% Reduction in Licensing Fees for Private Cars – although that will not take effect until 1st of April 2026.
The Ministry of Finance advised the following:
Reduction of the Base Rate of Land Tax by 50%
Land is a significant revenue earner for the Government but can also represent a burden for homeowners and renters alike.
In 2019, a new base rate for land tax was introduced and set at $300 a year. Given the island’s fiscal progress, the time is right to reduce this tax and provide more tax relief.
The Government will reduce the base rate of land tax from $300 per year to $150. This reduction will apply to all homeowners and renters who pay land tax. This land tax reduction will take effect from 1 January 2026.
10% Reduction in Licensing Fees for Private Cars
As the Government works to reduce the overall costs associated with vehicle ownership, government will implement a further 10% reduction in licensing fees for private cars.
Though this tax reduction is being announced on May 2, it will be set to take effect from 1 April 2026.
