Economy
With an average income of around KYD$47,000, Caymanians have the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 14th highest in the world. The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD = 1.25 USD.
The government's primary source of income is indirect taxation: there is no income tax, capital gains tax, or corporation tax. An import duty of 5% to 22% (automobiles 29.5% to 100%) is levied against goods imported into the islands. Few goods are exempt; notable exemptions include books, cameras, and infant formula.
On 15 July 2012 the Cayman Islands premier McKeeva Bush announced the intended introduction of a "community enhancement fee" in the form of a payroll tax to be paid solely by expatriate workers. Caymanians themselves were to remain exempt from this tax. This would have been the first direct tax on income in the Cayman Islands' history. Bush also announced a five percent fee on "certain categories of employment" to be payable by businesses. However, the payroll tax would lower GDP and was scrapped before it had been implemented.
Read more about this topic: Sport In The Cayman Islands
Famous quotes containing the word economy:
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