- September 7, 2020
- Posted by: Dawgen G Tech
The Government of the Cayman Islands has ruled out the introduction of direct taxes or new indirect taxes in response to the COVID-19 pandemic.
In an August 14, 2020, statement, the Government said the territory had “good reserves and decreased debt [and] the Cayman Islands is facing the current global pandemic crisis in a strong fiscal position.”
Speaking at the Chamber of Commerce’s third Annual Economic Forum, Finance Minister Roy McTaggart emphasized that there were no plans for new indirect or direct taxes.
McTaggart said: “My message today is not all doom and gloom. Yes, we are currently facing severe economic and financial hardships that will require all of us to dig deep in order to persevere and survive. But because of the fiscal strategy employed over the past two terms, good reserves and decreased debt, we are facing the economic impact of this pandemic in as strong a fiscal position as I could have expected. This level of economic strength has allowed us the leverage needed to make certain decisions to better respond to the virus so as to protect life and health, and then later as we started our phased program of recovery.”
The Government said the economy is poised for slower growth, with 2020 growth expected to fall by 74.6 percent in the tourism sector and by 3.8 percent in finance and insurance, and by 1.7 percent in business services. Government spending will be 12.6 percent higher than budgeted, it said, as a result of supports for businesses and individuals.