Plans for stamp duty hike shelved, says premier

Government is rethinking plans for a stamp duty hike on luxury property – less than two months after floating the plan.

Premier Juliana O’Connor-Connolly said the proposed increase was now under “active reconsideration”.

In her budget address to Parliament in December, the premier had signalled plans for an increase in the tax for high-end properties in certain areas.

No details were announced at the time. A one-time stamp duty of 7.5% of the sales price is currently charged on most property transfers in the Cayman Islands. 

It is understood that government had hoped to raise that – potentially as high as 15%, according to some reports – for higher-value property in the Seven Mile Beach corridor.

But, O’Connor-Connolly, speaking at the Chamber of Commerce Economic Forum at the Kimpton Seafire resort on Friday, walked back on the proposal.

“We have heard your cry,” she told business leaders at the forum, insisting that the change in plan would not impact government’s forecast of raking in around $130 million in revenue from new income streams over the next two years.

In an hour-long speech followed by a brief question-and-answer session with former Chamber president Shomari Scott, the premier expounded on some of the key points of her budget address.

She said her United People’s Movement government – a reshuffled version of the PACT government following the ousting of former Premier Wayne Panton in November – was committed to building a sustainable economy that allowed everyone to share the spoils.

She said Caymanians were increasingly feeling left behind by what some see as “runaway economic growth”, adding, “Economic sustainability should not only prioritise growth but also focus on social equity, cultural preservation, and the well-being of native communities.”

The premier reiterated her commitment to buying up beach land and creating new green spaces and public parks, and outlined a handful of planned infrastructure projects in the pipeline over the next few years.

She defended government’s decision to take on new debt to help fund those investments, insisting the public coffers remain in good shape.

‘Playing catch-up’

Highlighting a surge in population, she said, her government was now addressing issues that had been neglected for too long.

“Right now, we as a country are faced with the task of playing catch-up in so many areas,” she said.

“We are trying to build roads, houses, schools, waste management facilities, sewerage upgrades, and more to deal with a population that has grown faster than our infrastructure.

“With our planned capital projects, we are not only trying to catch up, but also to adequately prepare for future growth.”

During the question-and-answer session, the premier also emphasised plans to expand Clifton Hunter High School and claimed improvements in government schools under her watch as education minister had seen teachers and students moving from the private school system to the public system.

Space constraints in public schools have limited access for non-Caymanian children and the premier added that more investment in private schools would be welcome.

If any investors wanted to bring a new school to the islands, she said “it would make my day”.