Government has extended certain duty concessions, predominantly affecting Cayman Brac, in an attempt stimulate economic activity.
The extension for another 12 months to Dec. 31, 2015, concerns the 100 percent stamp duty waiver on Cayman Brac, a 100 percent import duty waiver for building materials imported to Cayman Brac and Little Cayman, and the concessionary import duty rate of 12.5 percent per gallon for motor gasoline imported to Cayman Brac.
The flat duty rate of 15 percent for the import of building materials to Grand Cayman has also been extended.
The normal duty rates for motor gasoline imports is 75 cents per gallon, and for building materials general import duties range from 17 percent to 22 percent.
Marco Archer, minister for finance and economic development said, “The extension of these concessions is consistent with the government’s ongoing efforts to stimulate growth in the economy, and I encourage all developers and other stakeholders to accelerate their construction activity during this further concessionary period.”
In the context of the concessions, building materials include “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,” government announced. Items such as furniture, accessories, electronics and appliances are specifically excluded.
To qualify for a full stamp duty waiver on land purchases on Cayman Brac, the construction of a home, apartment or business premises has to be completed within two years.
If the development of the property is not completed within two years and in the absence of a reasonable excuse, applicants are required to either pay the stamp duty in full plus a penalty of 10 percent of the stamp duty, or request a further extension from the minister of finance and economic development to complete the development of the property.