Premier warns of VAT for Cayman Islands
(CNS): The country could be facing 5% value added tax (VAT), despite McKeeva Bush’s statements that he would fight against a direct tax. Although the premier has not yet revealed what the Foreign and Commonwealth Office has said about the proposed three-year plan submitted to them at the beginning of this month, he has confirmed that Cayman will be seeking to borrow a further $300 million. As a result, the UK is still seeking more sustainable revenue and Bush has said if he had to choose a tax he would introduce what he called a value added fee. Contrary to his recent comments that he would not implement taxation, he has now said the country can’t go on without one.
“I do feel this country cannot carry on much longer without some sort of generation of payment within the country,” he told News 27 in an interview.
The UK has said the Cayman Islands must show some form of sustainable revenue, so the premier said he if he has to choose he would prefer a general services tax or a value added tax but said he would then withdraw fees in other areas. He said this was the tax that was fairer because rich people spend more so they will put in more.
Following his visit to the UK in March, the premier told the country at a press briefing on 15 March that the UK had agreed to the Cayman Islands government tackling the 2009/10 budget deficit through cuts and not taxes. Bush said the FCO was allowing the CIG to work on a three-year budget plan that focuses on reducing public expenditure rather than new revenue sources. Depending on the extent of cuts government can make over the next three months and the three-year plan, Bush said the UK had also agreed to limited borrowing, if necessary, at the end of this year to address the deficit.
However, the governor noted more recently on 9 April that the UK had not given permission for the CIG to borrow because the OT minister had not been asked. Taylor acknowledged the UK was still expecting the Cayman government to introduce new revenue raising measures as well as public sector cuts since, as Colin Roberts the Director of the OTs has said, it would make Cayman more resilient to the ups and downs of the world economy.
Category: Headline News
NO other new taxes because additional taxes will totally destroy our economy especially during the worst recessionary period in the last 80 years.
THE SOLUTION
Totally eliminate Customs Duty and implement a VAT/GST tax using the exact same civil servants in Customs to administer the new tax system.
This will satisfy the UK FCO and raise new revenue for CIG, however the deal is that Govt must follow through with massive cuts in spending and reduce the CS wasteage first before we the public, finance more of this current Govt’s wasteful spending which is definitely not on the country’s infrastructure. The last Govt invested in infrastructure for the benefit of the country and it’s people over the next 50 years and this is not wasteful spending.
PEOPLE OF CAYMAN:
Has anyone considered reducing the size of government, privatization, and keeping those essential services; hence, lowering duties and fees upon the private sector??? Also, has anyone considered cutting the MLA’s and top government employee salaries???
Please… we cannot afford to be listening to the UK’s Foreign and Commonwealth Office! Do you seriously think that they are looking out for our interest more than their own??? Labor Government, under Brown, want us to tax for one reason, coupled with broadcasting our crime over the international news like it did with BBC: To remove our loyal clientele that support this financial industry from here to the UK… so to help replenish their broken economy. Don’t you remember Obama and Brown (a few years back) attributed to a large degree, the global recession to offshores. Obama himself referred to us as a tax haven where many in the States run to avoid paying their taxes. People, don’t be bamboozled! The Labor’s FCO and her Governors are out to get us!
We don’t need a VAT tax! It is either we increase duties and fees here or we reduce the size of government, getting rid of the non-essentials. I prefer the latter! This is what the Miller report suggested as well!
People, don’t be fooled. Our government leaders need to wake up and PUT THE PEOPLE FIRST.
I am upset
The VAT will require costly administration and will be fraught with issues of non collection. It is farmore efficient to increase the current import duties and there will be NO extra cost of implementation. The politicians have already been told this many times but they want to be seen to be appeasing the FCO with the "idea" of a ‘tax’ and that is frankly dangerous. Would you rather implement something just to appease the FCO while watching the economy buckle or go with the more efficient approach and at least minimise the fallout? raise import duties further. It can be done by focusing on certain areas where the revenue can be maximised.
Undoubtably VAT will be expensive to administrate and with it will come the fiddlers and two sets of books. Moreover residents will be spending more time in Miami and ordering more goods from overseas. No doubt this has increased in the recession in any event.Local traders need to be protected and I am surprised that the Chamber of Commerce has not become involved in their defence. I suppose duty free shops will be excluded but what about services in the financial arena? They are too expensive in any event.VAT ain’t going to work and that is the end of it.
I wonder what the next daft idea will be? What is required is a think tank made up of people of the right calibre not political nominees who forget to turn up to meetings.
I wonder what the next daft idea will be? "Payroll Tax back on the table" There you go.
Still nothing done to CS while everyone clearly says this is where the problem is.
I would like to know who would be stupid enough to let Cayman islands borrow a Further 300 million and expect to get paid back in the future? Just what is left of Cayman for collateral? Surely not its security?
The only TAX needed is on the Bloated Civil Service.
Why should we pay so that they can continue to underperform, and have no accountability?
Fire those why don’t comply with Directives, and we will see how quickly the others will fall in line.
Don’t get your panties in a twist. Mac is merely setting himself up as the Great Saviour, who saved us all from the evils of taxation and miraculously saved us from the pretend depths of despair. He has no intentions of implementing this.
Mckeeva Bush needs to stop talking. The government needs to fulfill their first recommendations for cutting expenses, which were approved, before they begin bantering on about tax. Why haven’t they cut salaries? Why haven’t they trimmed the civil sevice? Why haven’t they sold government assets? Implementing a VAT is not going to help. It’s going to cause inflation AND it’ll cost possibly millions to implement. Millions that we don’t have. They have to create a department; hire and train more staff, house them somewhere etc. Then they will have to carry out payment collections. It just seems so absurd right now!
Mckeeva Bush needs to stop talking. Follow through with your orignial plan and, should that still not get us to stability, then let’s talk about tax. Frankly I think property tax would be better suited but I’m no tax expert, which leads to my other point. Hire a professional as a consultant with experience to create a proposal. Contract out someone that actually understands types of tax, tax procedures and can make an educated, calculated suggestion that would mitigate the risk and decrease the country’s financial debt.
Mckeeva Bush needs to stop talking.
A Simple suggestion for the government. Spend less than is collected. Remove the personal allowance from the premier and his deputy. Stop wasting money on walls, security guards, world travel & promising free houses to those who are able to work but too lazy to hold a job. Curtail the welfare system only help those that have a genuine need. Provide proper training to unemployed or underemployed Caymanians to make them employable.
Take a hard look at the civil service. For those that can be cut, provide proper retraining and job placement. After all it will not benefit the enconemy if several hundred Caymanians become unemployed overnight.
Stop wasting money on grandiose projects i.e. boatswainbeach or the proposed Brac bluff project. Rather than increase duties and fees have a reduction for 6 months to stimulate the economy. Enable Cayman Airways to offer greatly reduced fares to visitors for 6-12months. I think the government would be surprised at how much new revenue would come in by these simple measures
I tell Mac if he follows Beloved UK, she will mess us up! We had the Miller Report’s suggestions, what happened to that?
Even an A-Level student of Economics will tell you raising taxes during a period of deep recession is economic suicide.
Look around you. When have you seen so many commercial spaces up for lease? Every day more small businesses go under. Local traders are desperately struggling to keep their doors open, and the government intend to make their products 5% more expensive by introducing VAT?
What kind of economic policy is this? Let me tell you: It’s a policy that ignores the principle of boosting the local economy to raise revenues, and seeks only to directy fill the government coffers as soon as possible.
The Premier says he’ll introduce VAT but promises to offset it with tax deductions elsewhere. What, like the promise to remove garbage collection fees to offset the 2% rise in import duties? That kind of promise? And tell me, how will taking tax with one hand and giving it back with the other work exactly?
I’ll bet the cost of setting up and staffing a VAT division of Customs & Excise will run into millions of dollars. I’ll also bet the government makes a complete hash of the collections system. I’ll further bet that many business will run into serious arrears costing the government millions of dollars in debt collection services. And finally, I’ll bet that 5% VAT will also be added to the recent 2% increase in import duty. Of course, otherwise we’d all import our goods from the US, right?
The implementation of more taxes (in any form) is likely to sink the local economy into a deeper and more damaging recession.
"And finally, I’ll bet that 5% VAT will also be added to the recent 2% increase in import duty"
I am sure you meant "the recent 10% increase in import duty"
before imposing a VAT why don’t you do as you had said?? did you take your salary cut?? have you cut the ‘bloated’ civil service??? have you put a stop to the indiscriminate gas charges????
Do your JOB before you start making us pay for your inability to do what you’re paid to do!
This was written about a long time ago! We all remember the Beatles:
http://www.youtube.com/watch?v=y8OgkjcW0g4
The VAT suggestion comes straight out of the UK and the Foot Report. This if anything else should tell us that the UK has little or no understanding of how Cayman actually works.
The Miller Report and others have pointed out that, in the Cayman scenario, customs duties are a much more cost effective and efficient way of collecting a sales tax, given that little value is added locally on goods and given the huge problem of likely fraud and nonpayment by local businesses. Further, charging VAT on services is fraught with problems (it was rejected in Florida a few years ago) and, under the usual VAT model, the greatest service earnings, those of the financial services industry, would be exempted as being supplied to overseas clients.
There is however one sales tax that does make sense and meets the various tests. That is a levy on all utility bills – electricity, water, TV and telecommunications. The utiltiy companies (about 6) can be required to collect and remit the levy to the Government. And enforcement and auditing compliance would be very cost effective.
As I have said before, we need new and sustainable revenue sources. And over and above the needed cuts in government wastage and the civil service costs. A reasonable community service charge tied to property, the above utility levy and casino licences (a national lottery is simply not competitive or economic and various studies show this) would go a long way to helping put Cayman’s financial house in order.
Tim
Of course, it comes straight from the horses mouth, and our politicians bow their heads and worship them. Who better would know these Islands than the locals or Islanders themselves. But no! We must follow the British whereever they go, despite their injustices upon other Islanders like the Chagos. They come here and I see our leaders treat them like messengers from God and the Queen. I hear them constantly called the Governor "His Excellency." As far as I know, no worm of the earth is higher than another one! There is only one who is Excellent and that is the "man upstairs." They are not even "excellent" in running an economy. Just read the Telegraph, Guardian, or any other UK paper and you will see that they are oozing with corruption up there.
We brag so much about staying with England and not drifting off with Jamaica towards Independence – valid argument, because we are small. But I will tell you this – If they should caused our economy to get in a worse mess, how will the rest of the Caribbean Islands look upon us, the financial pearl of the West Indies??? "Oh," they will say, "This is Cayman who had her chance to make a difference and fight for "equal representation" in Parliament, but oh look at her now! She refuse to fight and wish to remain like a child, stuck with a flimsy Constitution which gives power to the Governor and FCO to ride her like a horse, and dependent on them for her bread! Ha ha, what a fool! She saw it comin and did nothing about it!" The rest of the Caribbean may have there economic problems, but many of them know how to fight and survive. And what they will say about us, failing under the hands of the UK when we had other options, will be accurate!
Tim, they come now, telling us that we must cut in March… we knew that way before March when they were preaching to us to tax everyone! Tell me, who better would know these Islands than who the locals have recommended? Or, our we just wasting our time talking!
Hey Tim, why don’t you form a government and run the country for a while? Maybe at least as to the finances. You are one of a handful of people that know how the big picture works, and we could really use your help.
You could run the money end of things and put the civil servants on an allowance for them to split up as they like – more employees means lower salaries for everyone.
WE NEED YOU TIM!!!
Taxes and more taxes, tax the goods, tax the income, tax the property, tax the dog, tax the cat, tax the children, tax the goods and services, tax the sand, tax the water, tax the car, tax the boat, tax the jewels, tax the air, tax and more taxes, taxes over my dead body welcome to the world of taxes.
First thing Govt. needs to do is produce up to date accounts!
Then property tax (on developed property…Lands & Survey can collect this). And simply raise import duties (Customs already collects this) Lastly, increase vehicle licensing fees based on vehicle value (like is done with import duty…higher fee for higher value)
None of these would require any new Govt. departments.
Oh, and MLA’s reduce their salaries as promised. And offer CS early retirement and new employment contracts to reflect todays needs (ie: insurance contribution).
"And simply raise import duties (Customs already collects this) …"
I beg to differ. How many times do you fly back to Cayman on a full plane and yet only expats are in the "goods to declare" line? Perhaps if the Customs officials didn’t allow friends and friends of friends; family and family friends and their friends and their friends’ friends to walk through after a huge shopping spree in Miami the government coffers would not be so badly placed. I’m afraid it all comes back to people doing their jobs whether the person is known to them or not.
Perhaps this once again falls under the much thrown around "entitlement" that is so rife in the Cayman Islands.
The vast majority of goods do not come through the "goods to declare" line at the airport, but through the shipping ports. And increasing the policing of Customs at the airport can improve collection to address the concerns you speak of.
My main point was to identify areas of increasing collections with as little as possible of any increase in Govt. departments/personel.
The expats are here on permits, One infraction and they are out of a job, out of Cayman and maybe out of an occupation, if they are connected with finance.
It would be better to do away with the 5% that employers have to contribute to their employee pension and pay this amount to government instead. Employee will continue to pay their 5% to their pension plan. This makes better sense to me and at the end of the day no additional expense will be passed on to the employer or employee and the Cayman Islands would still be tax free while the government will be able to make 5% more in revenues.
You idiot. That 5% is what employees currently get! You’re suggesting taking that workers, so that when they retire, they have saved less, so will be in hardship when they are old. People need to save a minimum 10% for a pension, so reducing this is creating a problem for later life, which Government will have to help people out with.
If the decision is being made unilaterally to impose a VAT which it is, then before agreeing to this, citizens should demand to see updated accounts from
EVERY Government Department, Agency, and Business, including most recent accounts. Which we have not seen.
AND
MLA’s should first follow through on the promise of reducing their re-numeration. Which they have not done.
AND
An indication which they have stonewalled that the Civil Service will immediately reduce it’s numbers and the remainder begin paying half of their pensions and health insurance. Which they have not done.
AND
Release the 2010/11 Budget to the public including figures on where government has so far achieved savings. Which we have not seen.
Otherwise:
Stick this tax where the sun don’t shine
Please, Quick, people, please, we have no time to waste! We need to call for a referendum to remove the premier. If Cayman is to survive, people we must demand a referendum calling for the removal of Mckeeva Bush. When we think it cannot get worse then Mckeeva Bush comes up with another amazing, ridiculous & devastating plan for our once beautiful Cayman islands. He is very quickly destroying us. The PPM spent money on schools & roads, but by gosh they never did anything like what this government is doing! In only one year they have brought more destruction, embarrassment & shame on these islands than any previous government! Only one year? Can we dare take three more?
Please people, we must call for a referendum or suffer for years to come. We are complaining like hell now, but it is only going to get worse! It is referendum time, the dictator must go. This is no joke.
There’s no point in trying to get rid of Bush, XXXXXX there is nobody eligible that could be trusted to take over and do a better job.
Until you people start selecting electoral candidates based on skills, policies, integrity and competence instead of selecting candidates based on who you know and then voting based on which party promised you the biggest TV, or the most business to your company or new hurricane shutters etc.
MLAs know they only have to offer monetary gains and bribes to get votes. If instead they had to show their commitment to improving the islands, working hard to create and save jobs etc, then you would have a different set of candidates.
You can blame others all you want but the fact of the matter is that the Caymanian voters keep continually detroying their country by voting based on personal greed rather than the future of the islands.
Anonymous @21:54 get ready for the shocking news of the day…….i hope that your heart is strong and hopefully you are in good health but believe it or not the UDP will suceed and win in 2013,so just add 3 years to 4 more and you get 7 more years of the UDP.Premier Bush is cleaning up the nasty mess that the PPM created,and by the way do not look for the PPM to win another election within the nex15-25 years. The UDP is doing what they can to fix Cayman,call for a march or referendum all you want(remember Chuckie and his million man march)ha ha……….don’t you fret your self to death now ok,just sit back, hold tight and relax!!!!!l LMAO
LOL!
The really amusing part is that you actually believe what you write.
The writing is on the wall, Nebuchadnezzar.
Ha ha ha ha. This is too funny. You really should do stand up.
Someone… has a strange definition of abuse. what did you want me to say "hey a vat is a great idea we don’t care where it goes! or where the rest of the money has gone bring it on." are you serious?? I wouldn’t trust this group with my kid’s milk money.
What a mess…..yeah McKeeva praise Ken Jefferson now……he did it to the PPM and now its your turn……LMAO…..tek it !!!!
So McKeeva you increased import duty on everything by 2% in the last budget and promised the peoplethat in return you would remove garbage fees……well well well……. we feel the 2% but we’re still paying our garbage fees. But I knew that would happen so you didn’t fool me.
Now yesterday you appeared on TV talking about imposing a VAT on the people (clearly a recommendation from your UK handlers)….more taxes again…..and promising to remove taxes somewhere else in return. Hmmmm……..did u mean that in the same way that you removed the garbage fees ?
Perhaps we should check so lets ask the question : do you even understand the meaning of the word "remove" ? Could that education under the mango tree have taught you the meaning to be "leave in place" ? Ohhhh how I love the mango tree education !!!!
Ok peeps you voted for it, you wanted it…..think you can take another 3 years of it ??????
Over to you !
well well… thanks for de mic, Mr. dj…
Me truly thinks me can take another 4 years of PPM
Customs duty on imported goods is an indirect form of VAT. If you don’t buy the goods, you don’t pay the tax. So why not raise Customs duty to 30% and call it quits. If you listen to the UK and introduce VAT you will only be creating further problems, in that you will need someone to monitor the retailers to see that they collected and handed over the tax, creating another department and more expenses. The reason the UK introduced VAT was because they produce goods in their own country that wasn’t subject to duties. We produce nothing, so close to it that VAT is totally unnecessary. Therefore don’t be so dumb and swallow the UK’s direction blindly. If they had been so smart, they wouldn’t be in the financial mess that they are in. Increase Customs duty if you need to. It might hurt the population a bit more, but at least it won’t cost the government anything further to implement. Next thing is stop the handouts. People enter business all the time and sometimes they win and sometimes they lose. If you pay Matrix losers, you’ll have to pay others in the future. How can you ask Civil Servants to take a pay cut and you squander money like this. People lost in CLICO which the government licenced & in Doyle which the government licenced. Are they entitled to recompence too? And the money losing enterprises like Pedro Castle & Boatswain Beach. When is the line going to be drawn? I see a bleak 3 years ahead of us.
Be careful. VAT more often than not applies to services as well as goods so the effect of the introduction of VAT will be much more far reaching than a simple increase in import duty. People would find that they pay 5% more for going to the doctor or dentist etc.
+ VAT on fuel bills, clothing, etc.
The poor people take yet another hit.
Put VAT on offshore services such as legal fees and watch Cayman close down. As a jusidiction we are way too expensive and hence the punters and their Cayman law firms are going elsewhere. Very few firms have opened here since the Government’s drive of some months ago. It is not going to happen until we reduce fees and even then it is unlikely.
Cayman needs to concentrate on keeping existing business and that without Government intervention. The latter needs concentrate on getting its own books straight so that perhaps one day they could possibly be audited.
This is so true and (people) like Ezzard just don’t see the harm they are doing to the long term prospects for ordinary people by bumping charges and fees. That is why Maples is now desperately re-branding itself as a global firm – the single most worrying story for indicators of Cayman’s future. For good reasons or bad reasons the Cayman brand is tainted, and there are so many other more palatable options out there. VAT will have to exclude professional services or it is over.
We had a VAT put in place in Canada, and the burden on a business administering it is massive: tracking VAT collections on goods and services, tracking "input tax credits" to recover the VAT the business paid when it bought the goods and services it bought to create the goods and services it wants to sell, running accounts in trust for the government for these funds, doing tax returns to make the payments… the accounting costs are huge (and taxable).
Businesses here HATE that tax and more than a few people collect the tax and just keep the money, and that’s with a VERY strong government revenue service. Imagine the Cayman government running this without the equivalent of an IRS or CRA.
Try to find another way. Don’t bloat the civil service even more with tax collectors that won’t be able to collect the tax.
VAT could open up a whole new set of opportunities. Unscrupulous business could collect the VAT and keep it for themselves like they currently do with pensions.
And like some resorts do with the 15% tourist accommodation tax they collect.
My gut feel for this comment by the Premier, is that it will never happen. He simply spoke without engaging his "advisers" to tell him what to say. This is fairly normal for his utterances over the pass 30 years of political life. Once the "advisers" show him how much will have to be spent to do this it will be another rubber sandal issue. The fact that most small/medium businesses do not keep any type of accounts and therefore would have no idea what they would be required to pay to the Tax Man, also appears to have escaped him. Much less how would the Tax Man know if they are being paid the VAT collected by a business?
This is such a joke. Anyone that thinks that we currently don’t pay tax is a fool. We live on an island which produces nothing. Everytime we consume, we pay tax. So this VAT is a form of double taxation.
Come on Mac, why don’t we add personal income tax to that as well or are you saving that for the next time Gov’t runs out of money?
Gov’t MUST cust expenses, it is the only way…..unless we double our population overnight and I don’t think anyone wants that either. We are small….go back to centralized Gov’t, maybe then Gov’t could get a handle of Gov’t finances.
I was hoping to buy property here (& thus have to furnish it), but with 5% on top of everything, I think it’s better to rent!
If this tax goes on top of all goods, I’ll buy 2nd hand from the paper & Boot Sales or do more trips to the US. As it is most goods are overpriced here, & if this happens I will just spend my money on food, rent & holidays elsewhere.
Pity, but as I’ve had no pay rise for 2 years but seen my costs go up, there’s nothing I can do but tighten my belt.
Cayman is not that expensive or difficult to live someone just sent me this web address you should really compare Cayman to Bermuda and then you would really want to invest in property here. The VAT of 5% is not the end of the world compared to what you can enjoy here and is allowed to achieve.
http://www.bermuda-online.org/costoflivingguide.htm
So Bermuda is the only alternative? Try Panama. Punta Pacifica Hospital has a management agreement with John Hopkins.
And who is going to run this department??? I presume the unemployed Caymanian’s. Etc. It will cost 100’s of thousand’s.
Reduce import duty, Support genuine companies getting work permits and get rid of the roll over policy.
Work permits generate income and supply many"Caymanian" jobs and people that stay WILL invest and buy property on the Island.
Cut the Civil Service TODAY not next year!!!
Civil Service already being cut you just don’t know about it. Maybe, you can check the statistics in say 3 months and you’ll see there are less than before. They are just not renewing contracts and not filling positions left open unless really necessary. When you see advertisements for vacancies, those aren’t new positions, they are unfilled vacancies.
You know the group mentality is what caused the loss of life in Pearl Harbor. They had the intel but the group mentality believed that it would never happen. That is what is happening here. People sprouting off things and not really checking things out.
19:30
Unfilled vacancies need to remain unfilled!! It’s not just a problem of new posts being created. The civil service needs to REDUCE.
Unfilled posts need to be cut and eliminated from the books otherwise they will be filled quietly when no one is looking.
"Unfilled posts need to be cut and eliminated from the books otherwise they will be filled quietly when no one is looking.’
You know the group mentality is what caused the loss of life in Pearl Harbor. They had the intel but the group mentality believed that it would never happen. That is what is happening here. People sprouting off things and not really checking things out.
If you don’t fill vacancies isn’t that a reduction? Some people really need to learn to read. Some posts have to be refilled. You want to go to the hospital and find out there isn’t a doctor, your house is burning down, there’s not enough firemen, you call 911 no one answers the phone, etc. Your kids have ascience teacher teaching English? Have some common sense.
VAT is a highly regressive tax.
As much as it hurts to suggest, raising duty is probably the best measure. Customs is already in place performing collections, so no new department is needed. This can be rolled back later if needed (however unlikely that is).
But, above all, expenses HAVE to be cut. Grow a pair and make some tough decisions. There are going to be struggling people regardless the route taken. At least but cutting expenses the government would be showing they aren’t just out for themselves and they too can feel the pain.
I for one have had enough of this one-sided tax and spend mentality.
VAT is a very expensive tax to administer and a very bad idea. Clearly if Mac had a clue what he was doing he would have deceased the cost of government months ago. How do we change the leadership of our government and bring in somebody that is competent?
Stop the panicking and the nonsense responses. A VAT is a good idea, it taxes consumption. You choose how to be taxed with VAT, sure you may have to stop driving the gas guzzlers, but is that such a bad thing? to even suggest an income tax is beyond naivety.
Cayman has had it so good for so long, the laws of gravity apply here too…what goes up, must come down. The population is simply too small for the country to have continued gorging itself in the fast lane, living the high-life of the past 30 years…..we’ve all done it, now its time to payback the check.
its going to be hard for a while…boo-hoo. We still have it good. But stop the nonsense and petty name-calling and finger pointing….lets just get on with it…its everyones fault, PLP, UDP, FBI, IRS, Black Eyed Peas, everyone….including you and me.
bring in VAT….nationalize gaming…..let the cruise ships dock and lets fleece the 2Million people who want to spend their funds here…..and lets continue to enjoy the stunning weather, and the margarita’s at sunset……
McKeeva will come and go….but Cayman gotta stay forever! Yah Mon!
Have you any idea the problems associated with the collection of VAT and how it is open to abuse.
No well then keep your comments to yourself.
The problem is status grants by cabinet and cheap labour. Now you want to give us Value Added Tax no way you keep your VAT and natives would much prefer our life of 50, 40 and 30 years ago. If given a choice of VAT or Income, hands down we prefer Income Taxes, this is fair across the board.
I am sick and tired of reading that McKeeva gave out status grants. My husband received his Caymanian Status during that period. Please bear in mind that McKeeva alone could not grant those statuses. Every MLA had the privilege of presenting the names of persons they would have liked to see get Caymanian Status. We need to progress away from that cry now. Find something else to gripe about like all the complaining and ultimately doing nothing. This is sinking us a lot faster than anything else. Get a grip Caymanians and deal with the real root of the problem, like so many ex-patriates employed in the Civil Service. How ‘bot dat!!!!!!!!!!!!!!!!!!!
Have you consiidered that maybe those people that you think are "ex-patriates employed in the Civil Service" now have Caymanian Status?
Again let me say our problems in this country is a result of the massive status grants of 2003 more demands on our goverment for social service grants, less monies in our treasury, more demand on our schools, more displacement of Caymanians and I could go on and on. Sorry but not one of these status should have been granted in this manner. I am positive that those who qualified under the law would have received status through the proper channels but now we have over 9,000 new people added to our population as a result. Our economy is messed up as a result of this. I am ready for my taxes and the sooner that we all have to pay the better.
I know what many of those grants have cost us. What I would like to know, however, is what did it cost your husband? How long had he been here? Had he applied through the prescribed channels? Does he call himself Caymanian?
a. These were Cabinet grants and so Cabinet (not MLAs generally) was responsible for the grants.
b. McKeeva Bush was the LOGB and so was both directly and ultimately responsible. You can absolutely sure that if he opposed it, it simply would not have happened.
c. Presenting names is not the issue. The issue was (a) the process which involved no background checks nor objective criteria but was based on political favour; and (b) the number of status grants. Does an employer hire every single applicant for a position, or does he assess the applicants based on merit and employ only one person? I am sick and tired of reading this pathetic attempt at deflecting blame.
We have an incompetent Premier who spends vast amounts of the people’s money on luxury travel, personal staff and hand outs to the party faithful. He needs to be replaced by someone who can reduce expenditure, produce a budget on time and NOT RAISE TAXES ANY MORE..
It matters not how many new taxes they add – if they cant even come up with a workable budget, or find out how much was spent in the last several years, or control and track current spending, then Cayman is headed straight downhill!!!
It is all so simple;
Put a tax on all foreigners that buy or sell condo’s.
A tax on real estate commissions.
Everybody making more than 100k, tax at 20%.
Tax the churches.
In a few months we have a surplus, that we can use for people unemployed or sick.
It is a disgrace for humanity, one sees 100k+ cars and people die because they can not afford the hospital bill.
Think about it for a minute. If one gets cancer here, one needs to continue working to pay the bills. Then when the deductable has emptied your bank account and the bank took your house, it is time to die, because you are broke. No, god doesn’t sent money.
The Europeans in this country know there is another way. It is called social security. The cayman islands have been kept dumb by churches and wealthy families.
After a hundred years the cayman islands is still a third world country. Socially left behind.
All their own fault though, said to say. This is what you get when you put your trust in the wrong people (church and government).
Caymanians, stay dumb or do something about it !! That is your choice.
Now, question to you since you seem so apparently knowledgeable- to foreign investors, what is it exactly that makes us attractive? For the mere fact that we ARE tax free. This is the basic principal of the Caymanian economy. Secondly, look at ‘first world’ countries who utilize the tax system and tell me who were the countries that at the beginning of the financial crisis in the depths of their debt and corruption started pointing fingers at jurisdictions such as US to implement the same failed systems that they employ. The idea that taxes are the answer is absolutely outdated.
Before we move to add another questionable feature to the Caymanian government and economy, we need to look at resources that need to be reined in as well as those resources that have numerous holes. Does one pour rice into a half filled bag with holes in it? No, you sew close the bag so you waste less and spare more. To add taxes to a system that obviously has its faults and problems is absolute stupidity. Then the question comes: who will regulate these taxes and see where the money goes? will we trust the government? The same government that throws dust in our eyes time and time again. We whine and rub our eyes, pointing fingers, but do we step forward to wrench them by their necks out of the dirt and put them in their place? What a pathetic example of democracy! The government must be controlled. There are a number of issues we must resolve and we just may find that our system is much more sustainable than they want us to believe.
Oh so well said!!! It really is amazing what my people will swallow when they are told "it is good for you"!!!! Yep, dumb as door knobs!!! I know it is serious, but it is almost beyond belief what they will believe!! I am also tired of trying to make believers out of the deaf, but it is like bombing for peace!!!!
It is incredibly disrespectful for you to say "Caymanians, stay dumb or do something about it !!". What a poor generalization to make. I’m caymanian and I’m not "dumb". I’ve exceled socially and academically both in Cayman, the US and in Canada. It is 2010 and you should know not to make such a comment. Were you not raised better? No country is perfect; no country makes all the right decisions – BECAUSE of the clash of different opinions, personal biases and individual agendas. As with any country or corporation or large body of human capital, the choices are not a direct reflection of everyone involved. Not everything can turn on a dime. Cayman is like a large ship, it turns slowly but eventually will change direction.
“so the premier said he if he has to choose he would prefer a general services tax or a value added tax but said he would then withdraw fees in other areas”
I wonder if the above (specifically “but said he would then withdraw fees in other areas” would be one of them April 1st fake outs again like it was with the Garbage Collection fees that were supposed to be removed to reduce the sting of all the other fee increases?
Or maybe it might be more like the double fake out where all MLAs and the Premier were taking a paycut in march?
I really love Cayman, but I’m not going to be able to afford living here pretty soon.
I’m away on scholarship right now, and I have a job (well paying) lined up (as a Public Servant) when I’m through with school, but I’m started to question what I should do. If I don’t come back to work in Cayman, I’ll have to pay the scholarship back; if I work in Cayman, I "pay" my time off (2 years), plus I’m making a salary. The latter sounds great right?
The thing is…I hate politics, and almost EVERYTHING in Cayman surrounds politics. It’s hard to find anyone doing anything anymore purely out of the goodness of their hearts. I’d like to think I’m a good person, and I want to serve my community the best I can. I would love nothing more than to work in Cayman, helping people that I know. There’s just so much animosity between expats and Caymanians, and I refuse to choose a side, because I’m a product of an expat and a Caymanian.
I’m sorry if I’m rambling, and I’m sorry if this does not directly pertain to the article, but this proposed tax is really starting to lean me toward staying in the US.
Cayman will always have a special place in my heart, but I have to make a living. I understand this national debt can’t be blame on a specific political party, but there is no accountability. For claiming to be such a Christian Country, we’re sure allowing alot of stealing and lying to go on. Debt doesn’t just happen! With every action, there’s a reaction.
CNS, thank you for allowing people to express themselves. In Cayman, there is no such thing as anonymity. I’m not one of these people who likes to "showboat", like so many of our elected officials do. I just like this open forum and getting (hopefully) positve feedback.
If anyone has suggestions for me, I’m all ears.
Everybody beats up on the poor Civil Service and its high time for this to stop. The Civil Service did and does not grow by itself. It grows when our elected leaders create another service or task and more staff are needed to get things done.
Here we are talking about introducing a VAT system. Does anyone believe that will operate all by itself? No, it will need a whole new Departrment of Government to monitor and administer it. If not, it is completely useless to introduce it. How will it be policed without a Tax Department?
So here we are blaming the Civil Service for getting bigger, saying that it has to reduce in size to effect savings, but on the other hand we are creating another monster Department that will increase the staff compliment.
If more revenue is needed, then add to the existing level of Customs Import Duties. That Department is already in place and functioning very well.
But let’s get away from blaming the defenseless Civil Service, which, in the main, is made up of our own people and our own families. Find some other avenue to vent to your frustrations!!!
More money for the Govt. to waste.
No! No! NO! Unacceptable! Absolutely unacceptable!!
If we as the electorate of this country swallow this latest flip-flop in Mr. Bush’s clearly stated policy of "no new taxes" without vehement and resolute resistance then we are all fools with no spine and even less sense – there is no hope for this pitiful country if we do not stand up now and make our shouts heard loud and long.
I for one refuse to accept any type of additional taxation without first seeing deep and meaningful cuts in spending prior to ever even breathing the word "taxation".
There now must be some accountability. Thus far, in spite of repeated strategies and attempts at cutting waste, this current government has failed to deliver on its promises and now wants us to cough more of our hard earned money to finance its failure to act. No! No! NO!
How many times must the current leadership flip-flop and renig on its promises before we realise that such leadership is no more substantial and has no more resolve or direction than a leaf in the wind?
Now there is no one else to blame. The current leader pointedfingers at wasteful policies of past administrations for the current mess and he solemnly vowed he could get us out of the situation by cutting that waste and WITHOUT imposing any additional taxation. Now the finger is pointing back and we have a right to demand answers as to why he cannot curb the waste in a sustainable manner without imposing direct taxation.
Starting direct taxation is a slippery slope that inevitably leads to increased taxation. No! No! NO!
His only solution now is to do what irresponsible leaders the world over do when their leadership is tested in the fire of hard choices: they fall back on "tax and spend" rather than being true leaders and making the needed cuts in spending. No! No! NO!
I ask now: how many proposals for generating revenue and cutting spending have we heard from the current administration? Ok, count them, the ones you can recall as ther have been so many. Now how many have actually been successfully implemented?
I now propose a unique and easy way to join in and protest the idea of taxation without picking up a sign or marchng one step (not that such activities are not warranted in this case).
I propose that all of us who are opposed to the idea of new taxes adopt a new catch phrase: I hope that it will catch on and be heard out on the streets. Come on people wake up from slumber and apathy! Repeat these words on the mirror. Greet each other with these words. Create bumper stickers with the words and tape up signs here, there, everywhere. Make this your mantra fellow Caymanians, here on this site and the forums end your messages and sign off on your e-mails with the words.
Say and write these three powerful words and mean them:
Repeat after me: "No! no! NO!"
The time to be heard is NOW!
Sign me,
No! No! NO!
Read my lips no more taxes.
A Bush is a Bush is a Bush…
Cut most of the CS in half (except for Doctors, Nurses,Teachers, Police and Fireservice) after that move it done do a further cut in the CS by cutting back on each secretarial/clerical positon filled by non Caymanians, reduce these positions by half. Except for essential employees place a hiring freeze on the CS. Centralize the HR department for all government departments.
The money velocity is not circulating in the island any longer more money is being sent overseas than what is being spent here. Government should try to address this problem by employing more of its native and having more of the local population employed instead of using work permits fees as an essential source of revenue, as long as this problem is not addressed the government will always find itself in a financial black hole and will be taxing the people of these islands to the ninth degree and nothing will change except the rich will become richer and the poor, poorer.
A VAT Tax will require a Tax office structure to collect ….it is a crazy idea!. The cost of implementation far exceeds the return for many years. As products are already taxed on arrival only services will be taxed and many provide integrated service and sales. A hairdresser would have to charge 5% on her service but not on the hairspray that she used on you….simply crazy idea…and yes, thank you Civil ‘bloated’ Service.
I would have to agree with "11.03" and many other comments on that same level! Our Gov would more than likely open a new Department to oversee and collect the VAT revenew! Overstaffed, overpaid and in fancy complex mostlikey in Caymana Bay or f possible at the Ritz waisting more than they collect! Below you will find the application form for that newly created outfit:
The successfull Candidate for the VAT Collection Agency must have the following experience and fit other requirements:
Must weigh atleast 200 Lbs. Must be able to read the Compass from 8.30-10.00 Am prior to checking the personal e-mails and forwarding all Jokes to their Buddies. Knowledge in operating Blackberries for more personal stuff!Be able to return to work in the afternoon about 2.00 Pm after a hectic Lunch and checking with the personal Business affairs in the Gov Vehicle with free gas. After all that stress you may consider to add some actuall work which will be above any Private Sector Pay-scale, no pension and no healthcare deductions!!! The Tax Payers will take care of that dont worry.
Please apply today to the Director of HR- VAT-CA, you will be glad you did!! Yor Salary consumerate according to experience and will be discussed and approved with and by the Chief Financial Officer of VAT-CA!
God help us and give some foresight to or "Leaders" as quickly as possible! Have a nice Day………better yet good night Irene…….!!!
QUESTIONS TO ASKED
Who will regulate – who will organize the tax – the people, some elite’s interest, the UK, or a party?
What will the tax be used for – social programs, govermental coffers, or dealtings?
Will it tax the people more than the sucessful entrepreneurs?
HOW WILL THIS VAT (similar to sales tax) EFFECT THE CAYMAN ISLANDS ECONOMY?
"….Bush has said if he had to choose a tax he would introduce what he called a value added fee. Value added "FEE" – hahahahaaaa – Mac not just scared of the Civil Servants but he also sure as hell scared of the "TAX" word. Heaven help us!
"Contrary to his recent comments that he would not implement taxation, he has now said the country can’t go on without one." Hello??!! Anyone surprised? Flip flop, flip flop, flip flop!
maybe his should call it the civil service subsidisy tax…..
listen up…. you hadn’t got the guts in the last budget to cut the civil service and you just added more fees and indirect taxes…result was an even bigger deficit….do not make the same mistake twice!
Yeah, organise a march, that will surely help……. NOT! It is obvious that the majority of persons commenting on this news service do not have any idea on how difficult running a country is, not to mention dealing with the UK.
Instead of posting stupid comments, post something sensible in order for us to survive this mess!!!
Not half as stupid as your own comment comes across!
It is obvious that the majority of MLA’s in this country do not have any idea on how difficult running a country is, not to mention dealing with the UK, particularly our current ‘Leader’.
With all due respect, the folks here on CNS seem to have more idea than the Premier or the rest of the sad bunch of excuses for politicians we have here.
Wrong. People need to speak up not stay quiet.
What we have at the moment is the following. The people with no idea regarding how to run the country on a balanced budget we call the Cabinet. The people who understand that the solution is to cut expenditure rather than raise more money are called the electorate. The electorate votes for the politicians who make up the Cabinet every 4 years. Immediately after the election the politicians start to ignore the electorate and to spend the peoples money on first class world travel and walls around their private homes. Then the politicians say that they have to increase the tax on the people so that they can continue to waste the money. That system will only end when the current incompetent politicians are removed and replaced with competent people who work for the people rather than working to rip off the people..
lets organise a march against this… that is normally enough to scare big mac into an embaressing u-turn….
i hope this is just more pre-budget posturing from mackeeva but who knows …. every time he opens his mouth it seems to another idea.. another u-turn on a previous idea… or another flip flop…..
Oh Boy no wonder the crime rate is getting hig on this little Island .
1. 5% pension
2. 10% or more Insurance plus you still need to find money to pay doctor up front then reclaim back, 90% you do not get any money return from Insurance.
3. pay cut or hours reduce
4. now VAT taxes.
how are people going to survive.
I would love to know?
how are people going to survive?
Get a job with the Civil Serice, no cuts for them, no pension payments, no health insurance payments.
I’m sure they’ll find a way of being exempt from any VAT to.
Depends what they drive, who pays for their phones and where they get their gas. Did I miss anything?
Sorry, no jobs in the civil service (unless you’re a connected consultant) because they’ve all been cut in answer to demands by the private sector.
Pay hasn’t been cut yet because the private sector (through their politicians) keep demanding for more services.
And yes, the civil service do pay their half of the pension, just like everyone else.
What’s insurance got to do with it?! Thosecosts are coming down- except for the Government adding $12 to each policy of course.
I agree with the other points though.
Imagine all those local businesses who will now fail due to the end cost of their goods and services simply being too high. The end costs are already too high with the 22% duty imposed on everything.
Imagine all those empty retail units, all the local staff without jobs….imagine the Caymanians who own these businesses going bankrupt and losing everything.
MR BUSH – make cuts where it is needed to save this country. Do it now.
The country cannot take any more fees, duty, charges and costs.
Not jsut the retail stores. IIRC VAT will apply to your dinner as well. (The resturant is creating added value by cooking and serving the food so that Vallue Added is Taxed.) Of course we don’t have any details so we don’t really know what is bieng considered much less proposed.
Gee chicken little My2Cents, the sky is falling. Maybe it won’t be such a bad idea for some dead beat businesses to fold. The good will always survive. A healthy shrinking of the economy might not be such a bad thing. The addition of a VAT will make it so expensive for locals and visitors. We will over price ourselves by adding a VAT as in other countries (UK for example) where people can hardly survive. I think it would be better to do away with the 5% that employers have to contribute to their employee pension and pay this amount to government instead while the employee continue to pay their 5% to their pension. This makes better sense to me and at the end of the day no additional expense will be passed on to the employer or employee and the Cayman Islands would still be tax free while the government will be able to make 5% more in revenues.
Good god…that will just kill the local economy even more, making locally available goods even more expensive than they already are.
CUT GOVERNMENT COSTS – don’t kill the economy to try and prop up an overmanned, expensive and wasteful government.
Thanks PPM!
You spent us into a real mess. You should be proud.
How much longer do you think you can continue with that excuse?
Can you read? What do you think the Premier’s plans are for the $300 million that he wants to borrow? Is that to SPEND, or will he put it in a deposit account so that he can say the country is no longer broke?
Did he not raise $300 million from a recent bond placement?
People are really sick and tired of each party and their supporters blaming the other side for everything that is bad, and claiming responsibility for everything good that happens not matter how serendipitous.
The average party fanatic seems no more intelligent than the roosters who think their crowing in the morning causes the sun to rise.
At least today’s chickens seem to be able to feed themselves without depending on handouts. Wouldn’t it be nice if the party faithful could reach that stage in life.
You had me until I got to your fourth paragraph. I am a PPM supporter and proud of it – do not insult my intelligence with your ignorance!
Maybe you should have another read. I said the average party FANATIC.
I have no problem with political parties as they are far better than the alternative, but I yearn for the day when the majority of my people will vote for PRINCIPLES rather than PEOPLE.
Politicians will sometimes go bad, but as long as you voted for what you believe in then you will never have anything to be ashamed of.
Unfortunately, far too many people are incapable of understanding what the politicians, or ordinary people for that matter, are saying, and hence they CHEER or BOO depending on the colour shirt the speaker is wearing rather than the substance that might be coming out of his or her mouth.
If you are a member of the PPM or UDP, and you do not recognise the type of person that I am talking about then it is YOU!!!!!!
Ask Miller for a refund please.
The man needs to grow a set and just cull jobs in the civil service. Make them contribute to healthcare and pensions like the rest of us, this is the only way to balance the budget.
Further increasing the cost of goods and services by adding tax is only going to drive away more business. Companies are already struggling to keep afloat and cannot afford to take this hit. Local retailers are going to be hit hard as they lose more sales to internet orders or residents shopping in Miami more.
The wastage on Civil service costs is massive and still growing. Any new revenues are not going to be big enough to cover the spiralling costs. The only way forward is the civil service cuts.
But has Big Mac got the nuts to upset the electorate.
A VAT tax is not what we need right now, just about every consumable item has seen an increase within the last 6-12 months. The poor and middle class are the people who will be adversely affect by a VAT tax. If a VAT tax is added can you imagine the mark up on items by most if not all merchants. The CS is being downsized, wages are being cut everyday and the powers that be refuses to introduce a minimum wage.
I hate all taxes and would prefer not to have taxes, however if we must than let it be 5% income taxes across the board not a VAT tax that will make living for the less fortunate more difficult. What is next for the people of the Cayman Islands?
I don’t believe in flat, I believe in spiral. Those making more should contribute more to society. The low wagers should not be paying the same tax rate as an upper class citizen.
My 2cent
Cayman already has a VAT(value added tax) for no value added.
This is the 22% duty on most goods which enter the country, and which is paid for by all the people living here. Call it a NoVAT.
It would be much simpler and much less expensive to raise the existing NoVAT to 27% than to implement another one.
Either directly or indirectly, it is the people who pay the total tax bill imposed by government. Consequently, every tax government imposes raises the cost of living.
It should be easy to see that it is the cost of government which is strangling the Cayman Islands. It has become to huge, expensive, and inefficient to be supported by the people who live here.
So the solution cannot be more taxes and bureaucrats to implement them. The solution is to cut the cost of government, and quickly.
I totally agree. Raising the duty would be much less expensive than adding a whole new tax. Just look at the nightmare Canada went through when they first added the GST (goods and services tax). Who is going to collect it, administer it, etc. We’ll be increasing the civil service rather than decreasing it. Enough!!!!
Thank you Civil service!
Your greed hits us all
I could not agree with that comment more. Why is this man running around like a chicken who has just lost his head? Cut the Civil Service. With the service received by the public, the civil service could lose at least 1/3 of its members. At least then the public might get better service from them. I would like to hear how many members of the public get a smile and a pleasant "May I help you?" when they go to a government office. It seems that a haughty demeanor and a habit of ignoring or belittling the public is a requisite of the services. If they cut services, maybe we won’t feel so bad having to go into a Government office anywhere in the Cayman Islands. An I am also "Bohn Yah"!!!!!!!