The cost of living has just gotten a bit
higher in the Cayman Islands, at least for those who choose to light up and
drink.
The import duty on cigarettes has gone up
100 per cent, which means that a pack of smokes will now cost more than $8.
That’s a hefty price to pay for an unhealthy habit.
Those who imbibe will also have to dig
deeper in their pockets if they want to continue quaffing their adult beverage
of choice.
The duty increases come in an effort for
government to raise more revenue and after a proposed fee increase lobbed only
at expatriates was proposed earlier this year.
The cry against the expat tax, which
government called a community enhancement fee, was loud and long and widened
the divide between many indigenous Caymanians and foreign workers.
It is agreed by most the government must do
all it can to balance its budget and get the territory out of the red.
Raising money through sin taxes, such as
those imposed on tobacco, beer and spirits is one way to do so.
Of course, though, it will increase the
cost of doing business for those who import the goods and those who sell them
either at retail establishments, bars or restaurants. That higher cost of doing
business is more than likely going to be passed along to the consumer.
But unlike a tax on expatriates, which
would have eventually been passed along to native Caymanians, only those who
choose to smoke or drink will be paying the new fee.
Civil servants who like to smoke and drink
will find their costs of living a little harder to deal with as they are facing
a salary cut to help government balance its budget.
At some point government is going to run
out of ways to continue raising money through fees linked to commodities and
cutting salaries.
Government seriously needs to find ways to
cut expenditures. Many people have offered up viable suggestions. It’s time for
government to start listening, and acting.
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You are correct. The band aid approach to solving the budget looks good for Government hacks but in reality the change brought in does not a thing for the millions of dollars spent by unwise construction, underutilized assets, donations to churches, and an endless number of expenditures spent for political reasons. The issue is simple, stop spending money we don’t have. Stop wasting time on minor fund raising schemes such as liquor and tobacco duties. Make some real decisions to bailout the country. DO YOUR JOB.
Today’s editorial is absolutely correct and also the comments posted by willie b on 9/17/12. The top priority for the government is to cease spending willy-nilly and explore all the possible ways to seriously reduce expenditure.
The editorial wisely points out that government will eventually run out of ways to raise revenues through fees linked to commodities and cutting salaries.
I agree with the observation that people have made viable suggestions on ways to cut expenditures. Lets face it, government does not have all the ansswers and workable ideas in this matter. There are intelligent, practical and well-thinking people who can (and have) put forth proposals that should be seriously considered. It is fiscally irresponsible to allow expenditure to exceed revenue and then start looking for a needle in haystack to solve the problem.
The increased import duty on cigarettes and taxes on beer and spirits may just provide the opportunity for some to quit the unhealthy consumption of these products.