In a bid to tackle the rising cost of living, Bermuda’s major trade unions have urged the government to reallocate a portion of the Corporate Income Tax (CIT) revenue to a dedicated cost‑of‑living relief fund. The union coalition, representing workers in the financial services, hospitality and retail sectors, argues that the tax collected from profitable firms could be redirected to support low‑ and middle‑income households.

The unions’ proposal comes amid a prolonged period of high inflation, with the Bermuda Consumer Price Index up 3.4% in the past year and housing, energy and food prices climbing sharply. Members say that a one‑percent lift in the cost‑of‑living tax, earmarked from the CIT, would provide a modest but meaningful boost to monthly budgets across the island.

Government officials have responded cautiously. Finance Minister Dr. Maria Thompson said the Treasury would review the feasibility of the proposal in the context of the 2026 fiscal plan, noting that any diversion of CIT funds would need to preserve the fiscal balance required to support the island’s debt servicing commitments.

The unions are scheduled to present a formal memorandum to the Cabinet at the end of next week. If approved, the measure could become a new mechanism for targeted fiscal relief, an approach that critics say may set a precedent for future tax‑based social spending.

The debate underscores the growing pressure on Bermuda’s public finances as the island seeks to balance economic recovery with the welfare of its residents.