From the Office of the Premier

Work Permit Fee Increases

One of the alternative Revenue Measures being put forward is an increase in certain categories of Work Permits.

Work permits that presently cost under $1,000 per year will not be increased at all.

The additional Revenue that Government expects to earn from the proposed increases is approximately $7.8 million.

Examples of work permits that will be affected by work permit fee increases are:

Real Estate Salepersons, Brokers and Real Estate agents; Financial Controllers; Accountants; Managing Directors; and Chief Executive Officers

Tourist Accommodation Tax

It is proposed to increase the Tourist Accommodation Tax from its present rate of 10% to 13%.

This is expected to result in Government having additional Revenue of $2.8 million in the 2012/13 year.

Departure Tax

Government proposes to increase the present rate by $10 per person.

This increase is expected to result in additional revenue of approximately $3.9 million in the 2012/13 year.

Insurance Policies – Imposition of a Stamp Duty Thereon

It is also proposed that a Stamp Duty will be imposed on certain insurance policies. The Government expects to earn $1.2 million of additional Revenue for the 2012/13 year.

Master Fund Registration

The Government proposes to change the fees payable in respect of Master Hedge Funds. The Government expects to earn additional revenue of $2.3 million as a result of this change.

Real Estate Changes

The Government proposes to revert (or go back to) the previous Stamp Duty regime of 7.5% for Caymanians and non-Caymanians. However, Caymanians buying property for the first (1^st) time will continue to enjoy Stamp Duty concessions. First time Caymanian property owners will be able to acquire property under the following regime:

No stamp duty will be charged on first time Caymanian purchasers buying bare land up to $100,000 or Houses or Apartments up to $300,000.

Those first time Caymanian purchasers buying land between $100,000 and $150,000 will pay stamp duty at the reduced rate of 2% . Those buying houses or apartments valued between $300,000 and $400,000 will also pay 2%.

Traffic Regulatory Fees

The Government intends to re-structure traffic regulatory fees during the present fiscal year. This is expected to earn Government an additional $6 million during the present fiscal year.

Fee on Leisure and Non-Commercial Boats over 30 feet

The Government expects to place a fee on leisure and non-Commercial boats over 30 feet. This is expected to earn Government additional revenue of $0.5 million in the present fiscal year. The fee will increase in accordance with the length of the boat.

Exempted Limited Partnerships

The Government also proposes to increase the annual registration fee payable by Exempted Limited Partnerships. These fees have not been increased for some time. The Government expects to receive additional revenue of $9 million in this present fiscal year.

In the aggregate, the proposed alternative Revenue Measures are expected to generate $44.3 million in 10 months and $53 million in a full-year.