Cayman to raise tourist taxes, work permit fees

Associated Press

GEORGE TOWN, Cayman Islands (AP) — The Cayman Islands is proposing to boost a hotel tax, increase the departure tax and raise work permit fees to help to bail the British territory out of a budget deficit.

Premier McKeeva Bush says the measures will generate $52.5 million in 10 months.

He made the announcement late Wednesday, two days after scrapping a controversial plan to impose a direct income tax on expatriates working in the famed no-tax financial center.

That plan outraged many on the islands, where financial services and tourism are the pillars of the economy.

Bush says he has "no intention to levy any form of taxation on corporate earnings, capital gains or profits generated by businesses."