In the recent conference committee, members of the Olbiil Era Kelulau has deleted the proposed revenue generating measure saying that “ we agreed to keep the language out with the understanding that the conferees will introduce and adopt reasonable tax measures within the first quarter of Fiscal Year 2011.”
The Senate rejected the House version which approved some of the tax measures.
The HOD earlier passed on third and final reading some of the proposed taxes which they said will generate local revenues of at least $36 million.
The delegates proposes in its version of the FY2010 budget that the government impose a 35 percent increase in water utility charges and an additional import tax of three percent tax a two percent increase in taxes on wages and salary earning beyond $25,000.
The HOD also supported a proposed scuba diving fee of $5 per day of diving.
A hotel room tax increase of five percent, departure tax increase of two percent and port use fees of nine percent has also been proposed.
The House when it approved some of the measures said that it will not burden the Palauans much.
The Senate meanwhile said that the budget measure is not the venue for new revenue-generating measures.
