Caymans rule out income tax

The government of the Cayman Islands say it will not introduce direct taxes to narrow a budget deficit.



Earlier this week, Britain suggested that the British territory start collecting taxes from residents.



The Cayman Islands does not directly tax any of the 80 thousand locally registered companies and has no income or property tax.



Anthony Travers, the chairman of the Cayman financial services association and its stock exchange, said the country must keep that system in place if the territory wants to remain competitive.