Just days after scrapping the controversial ‘expat tax’, Cayman Premier, McKeeva Bush has announced he’s replacing it with an increase in work permit fees, changes to real estate stamp duties and several other taxes.The announcement came two days after he scrapped a plan to impose a direct income tax on expatriates working in the tax haven. It outraged many on the island, where financial services and tourism are the pillars of the economy.Mr Bush, who is also finance minister originally wanted to levy a ten percent tax on all expats earning more than $20,000 a year, but backtracked after fierce opposition and warnings that such a move could cost the Caymans its competitive edge to offshore rivals like Bermuda.His new plan demands an increase of 35 percent on work permit fees between $15,000 and $24,000. The increases would affect more lucrative roles such as financial controllers, accountants, managing directors and chief executives.“Those are the groups that will bear the burden of the work permit fees,” Mr Bush said, adding that the cost of permits for lower-paid job categories such as janitorial staff would not rise.However, support positions in the financial industries would be affected. Work permits for personal assistants, executive secretaries, book-keepers, IT assistants and human resources personnel would jump 10-15 percent.The premier said the rise in work permit fees, along with other measures should generate $53 million in 12 months — $44.3 million in the ten months remaining in the current fiscal year.Mr Bush stressed he has “no intention to levy any form of taxation on corporate earnings, capital gains or profits generated by businesses”.There will however, changes to the current 7.5 percent real estate stamp duty for Caymanians and non-Caymanians. There will also be increases on stamp duty on certain insurance policies and changes to master hedge fund registration fees, which are projected to earn the government an additional $1.5 million and 2.8 million respectively this year.The government is also projected to earn an extra $11 million from an increase in the annual registration fee payable for exempted limited partnerships.Visitors to the islands will also have to pay more. Under the new plan, the territory’s departure tax would also go up from $25 to $37, while the hotel room tax would jump from 10 percent to 13 percent.The premier also said there would be fees for what he called “traffic regulation” during the current fiscal year, but he did not elaborate on what those would be. And owners of leisure boats over 30 feet long will have to pay a fee that would earn the government more than $500,000 this fiscal year, Mr Bush said. That fee would increase depending on the length of the boat.When news of the proposed expatriate tax broke in late July, Mr Bush said he believed work permit holders would still want to live and work in the Cayman Islands and that he didn’t think the tax would make businesses there want to move to other jurisdictions.At the time, he prided himself on Cayman having no other forms of taxation.“There is no racial tension here; people can own as many vehicles as they want; they can own property; they can buy their own home; and there’s no other kind of taxation,” Mr Bush said.“We have first class infrastructure here,” he said. “None of out competitors are in as good a position as us.”In response to those comments, seemingly aimed at Bermuda and some of the laws in place here, Premier Paula Cox pointed out that Bermuda’s work permit fees are much lower than Cayman’s — even before the proposed increases.“It should also be noted that, in addition to the ten percent payroll tax, work permit holders in Cayman must pay an annual work permit fee each year that exceeds the highest work permit paid in Bermuda for the total of ten years.”The Cayman Islands’ proposals and budget are subject to the approval of the UK’s Foreign and Commonwealth Office, which is expected to respond next week.