Tax, reform, debt: more clarity please

OK, so the Finance Minister has clarified that the General Services Tax will not come into effect next year. I’m glad we have some clarity over that.

With hindsight, it’s not surprising – I am sure there was kick-back from business and, of course, introducing a five percent levy  in an election year is hardly good politics.

It must still sting though and I am sure history will judge it as a climb down as Bob Richards was adamant that it would happen.

While saying the GST is off the agenda, for the time being, in the same breath he says: “We are making a lot of progress with payroll tax reform. The general services tax is more difficult and taking more time.”

So while we have clarity on the GST, we have zero clarity on payroll tax reform and the direction that is likely to take us or the timeframe involved. A progressive tax has been mentioned but so has the Minister’s distaste for payroll tax, period.

Kind of back to square one then.

What I found particularly interesting in the article (we knew about GST earlier in the week) was that the Ministry would be “going back to the market and looking for more money”, apparently in as little as a few weeks’ time.



Is this borrowing to pay back existing loans which have matured or is this new debt, either now or in the future? Clarity and context is needed please.

(Was the $250m Butterfield Bank ever used by the way? That was a clever move by Bob because by not borrowing on the international markets, ratings agencies like Fitch could not take it into account.)

If, according to Otto Von Bismarck, a former German Chancellor of the Exchequer, “politics is the art of the possible”, then it should not only be possible for the Minister to borrow, it should be possible for him and his Government to give detailed explanations of why.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at

Up ↑


Opinions from the Rock

Bermudians for Free Thought and Humanism

For Bermudians who subscribe to living outside of dogma and religious tradition


To Bermuda and Beyond

Media Village

A view on what's happening in the great world of journalism


Lighting the way to a new politics

Pink Ribbons and Boobies

In a world or endless possibilities, where dreams can be reached and lives can be altered…The unexpected can hit you at anytime…welcome to my world. Welcome to my Journey…

Bermuda Independent

Mainly Bermuda politics and economics

The Soap-Box

Experiences, observations, and opinions of a young progressive entrepreneur. Articles will mostly surround my passions of politics, business, education, and sustainability.


It'll bring out the billy in you !



Bermuda Blue

Commentary about Bermuda as I see it. All views my own


Wandering Photographer - A Tad Aimless For The Nonce.

Derelict Mom

For Eva with Love and Dereliction

The Anonymous Journalist

A view of the world from 5ft 3

BeachLime Bermuda

A blog


People of Bermuda


from one Island to another....


Information and opinion on business and construction issues in Bermuda.


the secretion of art by Rhian Ferrer

Onion Law Blog

Commentary about Bermuda as I see it. All views my own

%d bloggers like this: