The Ministry of Finance advises that the first phase of the tax and duty reductions announced in the 2025 Budget Statement takes effect today, July 1.
Premier and Minister of Finance, the Hon. E. David Burt, JP, MP, stated, “This year's Budget contained a series of tax reductions that will come into effect over the next nine months. The Government will do all that it can to reduce the cost of living and cost of doing business in Bermuda, and these tax and duty reductions will have a positive impact. The first stage of these reductions takes effect from today, and it is important that residents are aware of these changes.”
- Elimination of customs duty on all motor vehicle parts
- Customs duty on building materials and supplies reduced to 10 percent
- Duty exemption for returning residents increased from $200 to $300
- Fuel tax on electricity reduced from 8 to 4 cents per litre
- 50 percent reduction in monthly mobile phone taxes
The Ministry of Finance also wishes to advise that further tax and fee reductions will come into effect over the next nine months. On January 1, 2026, the base rate of land tax will be reduced by 50% from $300 to $150 a year. Further, on April 1, 2026, vehicle licensing fees for private cars will be reduced by a further 10%.
Premier Burt concluded, “Our mission is clear: to build a Bermuda that is fairer, more stable, and more affordable for all. These tax reductions are part of a broader strategy to return savings to the people, reduce financial burdens, and stimulate inclusive economic growth. We are delivering on our promise to make everyday life more affordable for working families, seniors, and small businesses.”