Over the last six months, government has foregone $4.6 million in revenue through stamp duty waivers, concessions or import duty refunds.
The figure was listed in the recently released unaudited quarterly report on core government finances for the six-month period ending 30 June.
While the report showed higher-than-projected surplus figures for the first half of the year, the Ministry of Finance has cautioned against overspending as 2024 rounds off.
Government registered a $203.2 million surplus for core government and a $216.4 million surplus for the entire public sector, bolstered by an increase in financial services fees.
However, government lost $4.6 million in revenue through initiatives enabling some funds to be foregone through the waiving of duties and fees.
In the first six months of the year, government gave up $3.768 million through stamp duty waivers for first-time Caymanian property buyers.
It was the largest foregone revenue recorded for the period, with 203 homeowners granted those waivers.
This was followed by 167 waivers/refunds on import duty amounting to $367,000.
Through the discretion of the Minister of Finance and Economic Development, 14 waivers of stamp duty were granted during the first six months of the year, totalling $287,000.
There were also 22 stamp duty waivers for Cayman Brac amounting to $138,000.
The ministry also issued six refunds of stamp duty worth $47,000 in total.
One $1,000 waiver of planning fees was granted during the first half of the year.
Foregone revenue falls within the ambit of the ministry.
The report explained that “many revenues foregone are statute-based (e.g. Stamp Duty Waivers for First Time Caymanian Property Buyers) and are granted once certain specified criteria in statutes are satisfied, whilst others are based on judgement and discretion”.
Although there was some foregone earnings of stamp duty, land transfers – which increased by $11.9 million for the first six months of the year – were “higher due to higher volumes of property transactions coupled with increasing property values”, the report stated.
Stamp duty revenue of $45.7 million for 1 Jan. to 30 June 2024, was $9.2 million more than for the comparable period in 2023.
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