Duty Concessions Extended
The Government has extended the flat 15% import duty rate on building materials imported to Grand Cayman for a further year, to 31 December 2017.
In explaining the reason for the extension of the duty concession, the Minister for Finance & Economic Development, the Honourable 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% concessionary duty rate.
With respect to Cayman Brac and Little Cayman, the following duty concessions are in place until 31 December 2020:
- a 100% import duty waiver on building materials imported to Cayman Brac and Little Cayman;
- a 100% stamp duty waiver, in respect of land purchases on Cayman Brac; and
- an import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline to Cayman Brac.