Former lecturer and economist Craig Simmons says the potential Corporate Income Tax revenues should be used aggressively to reduce Bermuda’s $3.2bn national debt bill
A local economist and former lecturer has labelled Corporate Income Tax revenues a blessing and curse for the government, as he warns against global uncertainties, national debt and broad pension and tax reform.
Ahead of the Budget, Craig Simmons says prudent management of CIT revenues will be critical for future generations to tackle the $3.2 billion national debt repayment and related interest fees.
He assessed the Finance Ministry’s recent 2026/27 Pre-Budget report.
He believes the government hasn’t quite grasped the impending threats that loom should we fail to significantly reduce the debt.
However, a Ministry of Finance spokesperson responded, “What matters for Bermudians is facts, not commentary that ignores the record. This Government has delivered the first budget surplus in over twenty years, enacted long-overdue public-sector pension reform that independent experts say removed a major fiscal risk, and implemented a corporate income tax that has fundamentally strengthened Bermuda’s finances.”
They add, “Assertions by Mr. Simmons that we are avoiding hard decisions are wrong and ignore what has already been done. We are using new revenues to reduce debt, lower interest costs, and secure long-term stability for Bermudians.”
The budget presentation is expected on February 20th.
