🏝️ Cayman Islands Premier reconsiders luxury property tax hike

The Cayman Islands Premier, Julianna O’Connor-Connolly, has seemingly reversed plans to increase stamp duty on luxury properties. The proposal, initially mentioned in her budget address in December, suggested the government was considering raising the duty in areas like Seven Mile Beach, a hotspot for overseas property owners. However, during a recent Chamber of Commerce Economic Forum, O’Connor-Connolly announced the idea was being reconsidered. "We have heard your cry," she told the audience. 🏖️

The Premier reassured that the change in plans would not jeopardize the government's revenue predictions for 2024/25. She stated that other revenue measures being implemented would generate the additional $130 million needed to cover operating expenses over the next two years. The original proposal would have seen the current 7.5% stamp duty rate increase to 15% for high-end beachfront properties around Seven Mile Beach. The proposed hike was seen as a way to increase government revenue without causing inflation or negatively impacting local residents. 🏦

Despite the popularity of the proposal among some community members, the Premier did not provide a reason for the U-turn. The acquisition of luxury beachfront property by overseas investors has been a point of contention, as the influx of low-paid foreign workers needed for these developments has strained local infrastructure. Many believe that the high-net-worth individuals purchasing these properties should be taxed to cover these costs. However, without further details on the proposal, it remains unclear who might have successfully lobbied against it. 🏠