Concessions renewed for builders and developers

| 04/12/2017 | 5 Comments

(CNS Business): The government will be continuing the flat 15% import duty rate on building materials imported to Grand Cayman for another year, officials have confirmed. The duty cut has been running for several years and Finance Minister Roy McTaggart claimed the concession was working and helping to boost the economy. “The government is committed on ensuring that our economy is on a path towards long-term sustainability that brings prosperity and employment opportunities for our people,” he said as he announced the continuation of the concession.

“The construction industry continues to spur economic activity; the value of imported building materials has increased on average by 9.7% per year between 2011 and 2016 and was 6% higher in the first six months of 2017 when compared to the same period in 2016,” the minister added.

The building materials covered under the special concession 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. But furniture, accessories, electronics and appliances are specifically excluded from the 15% concessionary duty rate.

But while the duty concessions on Grand Cayman will continue through 31 December 2018, a much larger duty concession package will remain in place for Cayman Brac and Little Cayman until 31 December 2020. Builders and developers on the Sister Islands continue to enjoy a 100% import duty waiver on building materials. And for Cayman Brac there is also a 100% stamp duty waiver for land purchases and an import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline.

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Comments (5)

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  1. Unison says:

    This is really nothing. Not even baby steps in the right direction. There is no need for the high import duty rates in the Cayman Islands - except to sustain a large government, which I feel many departments should be privatized.

    Until that day, MLAs temporary concessions means nothing. Just another way of keeping Caymanians dependent on government social welfares and handouts. When will they place their trust in our market to better the economy? 😐

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  2. question is are the big companies passing on these savings to the customers?

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    • Unison says:

      Hmmm 🤔

      But why should you be questioning what they do with their monies?  If the playing field consist of reduced import duties and all fees regarding business for everyone, you would not need to question - so long people have not been cheated in pay or services.

      The issue is government not providing a level playing field as described, and then they coming with these "temporary" concessions for the few and not the all. Such government interferences with the business field, does no justice for local opportunists who want to start their own companies.

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  3. West bay Premier says:

    The concessions would be good for the little man who is building a house. But look at who is doing the most building, and who is getting the most benefit from these import tax breaks . Can Government really afford to continue to lose that kind of revenue ? Then along with the Import tax break , I believe that Government has given some developers other concessions tax breaks for doing development in the Island.

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