"Once again, the Minister of Finance has sought to address the challenging task of reconciling social programmes for the community with the commercial needs of Bermuda, to ensure we all benefit from sustained growth in the economy," said Mr Raymond Medeiros, Chairman of BIBA.
Mr Medeiros expressed approval with respect to the changes to payroll tax announced by Minister Cox. "We are very pleased to see the Minister has heard the concerns of the local business sector and applied the same treatment of payroll tax for both local and international companies," he said.
Mr Medeiros added that this change addressed the historical imbalance in this context between local and international companies, and was sensible in light of the OECD and other international regulatory initiatives. "This clearly aims to reinforce Bermuda's position as a jurisdiction of integrity," he said.
He did however advise caution with respect to maintaining control on borrowing, as well as both current account and capital expenditure. "We hope that Government has taken precautions to ensure that the significant capital expenditure being undertaken in this budget does not ultimately result in additional unavoidable tax increases for us all in the medium- to long-term."
Mr Medeiros also stated that BIBA would have to assess how the review and planned changes to collection of payroll tax from self-employed professionals would affect their members. "We anticipate that a number of our members will be affected by this change; the overall effect on their businesses will have to be determined."
PRESS RELEASE cont.
Friday 16th February 2001
Mr Medeiros acknowledged the increase in Government funds allocated to BIBA. "We were disappointed that the allocation did not match the funds requested, given the obvious importance of international business to the viability of Bermuda's economy," he said. "However, we will trim our planned activities accordingly and try to make sure that Bermuda remains competitive and does not lose ground in terms of our international marketing, as well as the effectiveness of our local programmes.
BERMUDA INTERNATIONAL BUSINESS ASSOCIATION RESPONDS TO 2001/02 BUDGET STATEMENT
Mr Medeiros felt that in general terms the international business sector had been treated fairly in the budget and BIBA understood the rationale for the decisions made by the Minister with respect to the general increases in taxation. He stated that the impact of the increases on the costs of doing business for the sector remains to be seen.
"We are pleased to see that the changes in taxation have been made with an eye to maintaining some equilibrium in Bermuda's competitive position," said Mr Medeiros. "Government must ensure that our jurisdiction continues to provide value and a good return on investment for international businesses and the business sector as a whole."