Customs Tariff Amendment Act 2024

What this bill does

This bill reduces the customs duty (import tax) that BELCO pays on diesel and fuel oil used to generate electricity. The duty rate is being lowered to $0.08 per liter for both types of fuel that BELCO imports for power generation.

If passed (voted YES)

• BELCO will pay less in import taxes on the diesel and fuel oil it uses to produce electricity for Bermuda
• This could potentially lead to lower electricity costs for Bermuda residents and businesses if BELCO passes the savings along
• The change takes effect retroactively from July 19, 2024

If rejected (voted NO)

• BELCO continues paying the current higher customs duty rates on imported diesel and fuel oil
• No reduction in BELCO's fuel import costs, meaning no potential for electricity bill savings from this source
• Import tax revenue to the Government remains at current levels from BELCO's fuel purchases

Who it affects

This primarily affects BELCO as the sole electricity provider in Bermuda, and potentially all electricity customers if the company chooses to pass along any cost savings through lower rates.