NEW GOVERNMENT REVENUE MEASURES DETAILED

A slew of new revenue-raising measures have been detailed by the Cayman Islands Government (CIG) following the Budget Statement.

The extensive series of new and increased fees, some of which have more than doubled, was central to the Budget Debate and Finance Committee Meeting. 

The new measures are being published in their entirety by Caymanian Times as a public service to our readers and the entire Cayman society.

They are calculated to generate approximately an additional KYD$172.4 million in revenues with $72.5 72.5million in 2026 and $99.9 million in 2027.

That will come from additional fees on the financial services sector - Cayman’s main economic pillar and several targeted domestic fees mainly from Stamp Duty on high-end land transfers, immigration and work permit fees, along with various trade and business licence fees such as Special Economic Zone Trade Certificate Fees and Local Companies Control Licence Fees.

In explaining the justification for the increases, Hon. Min. for Finance and Economic Development, Rolston Anglin, said that in recent years, the country has faced growing fiscal pressures - from rising global inflation, increased costs of critical infrastructure needs, and the expansion of public service demands.

“It is against this backdrop that the Government has carefully reviewed the balance between revenues and expenditures, and determined that targeted, well-designed revenue adjustments are necessary to ensure the continued delivery of essential services and the sustainability of our public finances.”

Mr Anglin also stressed that before finalising the new revenue measures, the Government engaged in discussions with stakeholders, especially those in the financial services industry. “We listened carefully to their feedback and made adjustments where appropriate to ensure that the measures are realistic, proportionate, and do not compromise Cayman’s competitiveness as a leading international financial centre.”

He also sought to deflect concerns about the extent of the measures with the reassurance that the measures are carefully designed to strengthen our fiscal position, maintain compliance with the Framework of Fiscal Responsibility (FFR) and reduce the risk of future deficits as global economic pressures and local demands continue to rise.

According to Finance Minister Anglin: “The vast majority of the new revenue measures outlined are not intended to put further burden on the ordinary Caymanian. They are primarily concentrated in areas where the economic activity and capacity to absorb such costs are strongest - in particular, within the large, internationally focused segments of our economy.”

It was also pointed out during the Finance Committee meeting that several of the announced measures, especially increases in vehicle licence and related fees, do not apply to Caymanians.

Mr Anglin also spoke of ongoing stakeholder consultation on some of the measures, saying “they are not hard and fast and are therefore subject to adjustment, either up or down.”

You can review the full breakdown of all the new fees on pages 6,7 & 8

Wednesday Caymanian Times Newspaper