Cayman Finance, formerly named the Cayman Islands Financial Services Association, has endorsed the government budget for the fiscal year 2009/2010 in a press statement.
The organisation representing Cayman’s financial services firms said it was ‘very pleased’ to see that the efforts to increase revenues did not reverse Cayman’s historic position that there will be no direct taxation of any kind on property or income.
Cayman Finance believes that government’s reliance on traditional revenue sources and such as license fees, import duties, registration fees, and work permit fees will enable the government to manage its short-term funding needs and result in a stronger fiscal position.
‘The [Cayman Islands government] has taken a fiscally responsible, yet economically aware, approach to this short term funding issue’ said Cayman Finance chairman Anthony Travers. ‘Mr Bush and his team have managed to meet the UK’s demands for increased revenues without bowing to unreasonable and irresponsible pressure to implement direct taxation that would undoubtedly have crippled our financial services sector and done serious long term harm to the economy of our nation,’ he added.
‘Cayman Finance members are appreciative of the CIG’s efforts in this regard.’
The statement also sought to clarify that a 2 per cent fee on remittances leaving the Cayman Islands only relates to money services that operate outside of the regular banking system.
There would therefore be no impact on Cayman Finance members or their international clientele, the organisation said.