Premier: New fees will raise $90M

McKeeva Bush Cayman Islands 300x250
Editor’s note: The following is the full text of a statement released Thursday evening by Premier McKeeva Bush regarding additional revenue measures for government’s 2012/13 budget.

“In addition to the revenue measures announced as alternatives to the Community Enhancement Fee, Government is proposing increases to other existing fees to further improve Government’s revenue for the 2012-13 Financial Year and beyond. Along with the increases, a proposed new licensing system for Fund and Corporate Directors will create a new revenue stream.

“The Government is proposing to increase the annual fees for Exempt Companies by $100. Issuing of certificates for a company, filing of a company document, company certification and express service for certificates, certification, filing and registration and re-registration are slated for a $25 increase.

“Annual Fees for directorships under the Companies Law are earmarked for the following increases: Securities and Investment Businesses increased by $500; Regulated Entities increased by $300; and all other directorships by $100. Company Managers and Trust Services are both listed for increases of $100. A variety of CIMA fees are also among the proposed fee increases, ranging from $100 to $800.

“Proposed amendments to the Companies Management Law will create and implement a new licensing system for Fund and Corporate Directors. At present these Directors are not licensed or regulated.

“Once the 2012-13 budget and the Amendments to the Companies Management Law are passed by the Legislative Assembly they will have to pay the fees detailed in this revenue measure. The proposed fees range from a low of $500 for one directorship per director to a high of $25.

“These measures are in addition to the revenue measures that replaced the Community Enhancement Fee, namely: increased bank and trusts license fees, work permit fees, tourist accommodation tax, departure tax, master fund registration fees, traffic regulatory fees; exempted limited partnerships; imposition of a stamp duty on certain property insurance policies; reverting to the 7.5% stamp duty on land transfers; and implementing fees for non-commercial boats.

“In all, these revenue measures and those measures that replaced the Community Enhancement Fee are expected to earn the Government some $90.46 million during the 2012-13 fiscal year.”

McKeeva Bush Cayman Islands

Mr Bush

9 COMMENTS

  1. He just doesn’t get it.

    Cayman is in a market place. It has competitors who understand that if you put up the cost of your services, your customers will go elsewhere.

    McKeeva lists out all these fee rises and increased revenue as if they were good news. They are not. They are yet more nails in the coffin of the Cayman economy.

    The Government needs to cut spending to the point where it can start cutting fees, not raise them. Then our economy might start to bounce back a little.

    The offshore finance industry is not a fixed and permanent source of income and employment for these islands. It is fluid, mobile, and highly cost-sensitive. Like any other business, it tries to keep its costs down. There are plenty of other jurisdictions who realise this, and stories like this one are music to their ears

  2. Given that Mr. Bush will have a final legacy just prior to living in retirement and pension heaven.

    It will be that he and his incumbents are personally and fully responsible for the outcomes of their imperial judgements.

    More importantly, who and how will this mess get fixed?

    When we live in a world with near zero growth rates save China which is now slowing, how is it Cayman can increase spending and still grow its economy and the fortunes of its peoples?

    Economies are not elastic bands, even elastic bands can only stretch so far before they break!

    Someone has to make the hard choices before it is too late to recover the misgivings, it has taken more than 5 decades to build this enriched economy and to attract investment.

    But it will only take a few years of mismanagement and faltering leadership to reverse fortunes.

    Agendas come and go but this governments’ is fatally flawed and strife with ill feeling toward the enterprises that built Cayman.

  3. As someone who loves visiting Cayman, it is sad and disturbing to read all of these stories about the way government is attempting to raise revenue in a tough ecnomic time. These measures clearly hurt the biggest boost to the economy — tourism. Every type of business that caters to tourists must employ non-Caymanian work permit holders to some degree, and now every one of them will have to pay more. The only way to recover that is to pass along the costs to consumers, much of which will be borne by visitors. Not only that but the departure tax is being raised, as well as the tourist tax on hotel rooms by another 3 percent. Just in the small example of departure tax and tourist tax, if I travel with my family of 3, for a week’s stay at a 200 per night hotel, just the increase in hotel fees (140 to 182) plus the departure tax is 72 (42 in hotel fees, 30 in departure tax). And we’re just getting started!! How much will the cost of rental cars increase? Hotel room rates? Food? It goes on and on, and eventually will catch up. Yes, it sure sounds good that there is no income tax, no property tax in Cayman. But at what cost to the people there?

  4. Slightly off topic: I am still waiting to see the promised reduction to my CUC bills from the revenues raised by the master fund fees. Can anyone tell me if this plan has now been scrapped?

  5. LEAVE em lone they will soon price CAYMAN out of the international market we already the most expensive place in the know world. WHEN things have reach there peck they will decline. AM I the only one who thinks our politicians are over paid and needs to be mentally check out before the carry us to the bottom less pit..

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