Duty Concessions Extended
In an effort to further stimulate economic activity, the Government has extended the following import duty concessions for a further six months to 31 December 2013:
- the import duty concessionary rate of 12.5 cents per gallon for the importation of motor gasoline to Cayman Brac;
- the 100% import duty waiver on building materials imported to Cayman Brac and Little Cayman; and
- the flat 15% import duty rate on building materials imported to Grand Cayman.
In announcing the extension, the Minister for Finance & Economic Development, the Honourable Marco Archer said, "The extension of these concessions is consistent with the Government's ongoing efforts to stimulate growth in the economy, and I encourage all developers and other stakeholders to accelerate their construction activity during this further concessionary period."
The normal rate of import duty on motor gasoline is 75 cents per gallon whilst the normal import duty rate on building material ranges from 17% to 22%.
For the purpose of these concessions, building materials have been 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.