Cayman Islands Extends Import Duty Concession
by Mike Godfrey, Lowtax.net, Washington
21 December, 2016
The Cayman Island's Government has extended the flat 15 percent import duty rate on building materials imported to Grand Cayman for a further year, to December 31, 2017.
Explaining the reason for the extension, the Minister for Finance and Economic Development, Marco Archer, said: "The construction sector continues to improve and has contributed to strong economic growth in 2015 as well as in the first six months of 2016. But raising the import duty rate at this time may dampen the sector's recovery."
For the purpose of the concession, building materials are defined as "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." Items such as furniture, accessories, electronics, and appliances are specifically excluded from the 15 percent concessionary duty rate.
With respect to Cayman Brac and Little Cayman, there is a 100 percent import duty waiver on imported building materials, and a 100 percent stamp duty waiver in respect of land purchases on Cayman Brac. There is also an import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline to Cayman Brac. These duty concessions are in place until December 31, 2020.
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