By Gerardo R. Partido
Variety News Staff

SENATOR Ben Pangelinan, D-Barrigada, has introduced a bill which seeks to ensure that the visible gross receipts tax, or GRT, program is applied correctly.
In introducing Bill 94, Pangelinan said it is clear that some members of the business community have taken advantage of the opportunity to interpret the law to disguise price increases by making the GRT visible.
Pangelinan noted that businesses opting to show their customers the amount of GRT paid to the government following a customer transaction are utilizing varying methods of showing the GRT.
The different methods employed in visibly displaying the GRT have resulted in confusion on the part of the customer. Bill 94 seeks to standardize the method of displaying GRT on customer receipts to avoid any further confusion.
“The law provides for businesses the option of visibly displaying the GRT to customers. I’ve come to see different ways businesses show the tax to the customer. It is clear that some businesses have taken advantage of the law,” Pangelinan said.
Under the law, Pangelinan said that if the gross receipt tax is to be displayed on customer receipts, it must ensure that they do not in any manner, directly or indirectly, hold out to the public that the tax is not included in the price.
At present, Public Law 27-41 allows for businesses to show their customers the amount of gross receipt tax that will be transmitted to the government of Guam.
“My bill will make sure that the customer will always pay the price that is marked on the item or as advertised and will not be asked to add the tax when paying at the cash register,” the senator said.
Bill 94 provides that anyone opting to show to a customer the amount of GRT levied, shall not display, advertise, mark, present an invoice or bill for payment, or hold out to the public any manner directly or indirectly the cost of the transaction without including the GRT levied.
Pangelinan said the uniform visible display of GRT called for in his legislation fosters transparency and lets the people know the tax they are paying to the government when buying products or services.
“This bill would also clarify that we don’t have a sales tax on Guam and prevents businesses from factoring in an additional cost to what should already be applied to goods and services,” the senator added.
The bill will now be referred to an appropriate committee and a public hearing will be scheduled.