CMC – The Bermuda government has defended its decision to extend the duty relief for capital investments to restaurants and hotels to improve their facilities until 2029, saying it would help the British Overseas Territory remain competitive.
Parliament last Friday approved both the Restaurants (Temporary Customs Duty Relief) Amendment Act 2024 and the Hotels (Temporary Customs Duty Relief) Amendment Act 2024.
Junior Finance Minister Jache Adams, said that the relief was last extended in 2019 and formally expired on March 31 this year and that extending the measure for an additional five years would help the island remain competitive.
“A vibrant and exciting hotel sector is an essential component in the Government’s quest to provide a first class experience for our island’s visitors.
“Fortunately for Bermuda, most hoteliers are committed to upgrading their facilities to the highest standards possible, and those which have already reached world-class status are determined to maintain that achievement,” Adams said.
He said the legislation would come into effect retroactively effective April 1, with the relief to now end on March 31, 2029 and that hotels claimed a combined total of US$8.8 million in customs duty relief in the past five years, while the claims by restaurants had increased to US $2.5 million.
Adams said the relief was separate from that offered in the Tourism Investment Act, which offered hotels relief on payroll tax and land tax.
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