CIG keeps tax cut for builders despite growth

| 19/12/2016 | 24 Comments

(CNS): The government’s continued dependence on development for shoring up the economy was re-emphasized on Friday when the finance ministry announced that government would once again extend the flat 15% import duty rate on building materials shipped to Grand Cayman for another year. The concession will last until 31 December 2017, even though the construction sector is doing well, as government is afraid cutting the tax may dampen the continued development.

“The construction sector continues to improve and has contributed to strong economic growth in 2015 as well as in the first six months of 2016,” said Finance and Economic Development Minister Marco Archer. “But raising the import duty rate at this time may dampen the sector’s recovery.”

Officials said that building materials are defined as follows: “All physical components and substances, whether solid or liquid, used in the construction, renovation or restoration and forming a permanent part of any building or related structure.”

Items such as furniture, accessories, electronics and appliances are specifically excluded from the 15% concessionary duty rate.

Meanwhile on Cayman Brac and Little Cayman there is a 100% import duty waiver on building materials, a 100% stamp duty waiver for land purchases on Cayman Brac and an import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline to Cayman Brac until 2020.

Print Friendly, PDF & Email

Category: Economy, Local News, Politics

Comments (24)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    Why not roll back the 20% to 22% duty hikes that effect all of us? Does anyone really believe these duty concessions are passed on to the consumer? And frankly, I am not buying a house, but I am buying groceries and petrol. So drop the duty on those items. Or hey maybe remove duty from safety items like child car seats.

    Oh, I know why, no government big boys are effected by that, because they get huge salaries and are out of touch with the working class.

    • Anonymous says:

      Sad that this post got buried by newer posts, because decisions regarding duty concessions directly affect more people’s bottom line them most other topics. Govt has chosen to fatten the wallets of the few on the backs of the many, and apparently, no one cares. It is sad really.

  2. Anonymous says:

    I do not want to hear CIG say they can not afford something. If that is the case do not offer the duty reduction!

  3. Anonymous says:

    Who is benefitting from this overdevelopment? Not Caymanians.

    • Anonymous says:

      Everyone who buys or needs building supplies. Such as homeowners or home builders. So Caymanians do benefit.

  4. MM says:

    I wish they would lower the current 22% duty on fruits, vegetables, and baby and kids necessities.

  5. Brac Mafia says:

    Cayman Brac continues to be a welfare state where merchants like Moses K make policies that benefit his business yet costs to the public in the sister islands remain sky high. Is that a conflict of interests?

  6. The WA says:

    I would like to say thanks to the government for continuing this incentive, the bad part is the vendors don’t give it back which is a shame, and clearly the government won’t have a way to know if they do or not. Any way thanks to both PPM and UDP, for having the foresight.

  7. Smithy says:

    That is a short term view. The more economic activity generated by construction activity, particularly in tourism, the more money the government will raise in taxes and employment in the long run. Therefore more money will be available to help in the eradication of poverty.

  8. Anonymous says:

    The possibility of corruption looms large in these determinations.

  9. Anonymous says:

    but why? these taxes could ho towards paying the budget for the ever growing number of people on social services? instead they going tax the poor….caesars taxes

      • Anonymous says:

        Not sure where the figures come from with the “booming ecnomy” here, houses still going into foreclosure and people who do want to work still unemployed who were laid off. Government doesn’t care about giving “contractors” a break, its Dart who they are supporting but have to do it to all

    • Anonymous says:

      This Government has given tax breaks to everybody. We are all getting a $17,000,000 a year tax break from the CUC fuel duty alone. Poor people are not being taxed.

      • Anonymous says:

        That is a blatant lie. Our current duty system taxes those at the lower end of the spectrum, as a consumption tax, disproportionately to those with higher earning.

You can comment anonymously. See CNS Comment Policy at the top of this page.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign up for the CNS Newsletter, sent weekdays straight to your inbox