Toribiong does not agree though that exemptions should be for three years as he agreed to refer back the bill to the OEK and sign it into law when modified to exempt fishing companies from tax for only one year.
He said in a meeting with members of the Senate, Wednesday, majority of the senators expressed support on the measure.
“I will finalize my thoughts whether this measure will have legal obstacles. If there are no legal obstacle, I am inclined to approve it but if it will run counter to treaties, they will veto it.”
He said his decision will be made known today.
“My decision will be more legal than political,” the president said.
He also said although he asked Congress earlier to refrain from enacting bills relating to tuna fisheries activities in Republic’s water, he had to respect the wishes of Congress by supporting the measure.
Toribiong said enacting bills on tuna activities would be “premature and counterproductive in reforming domestic fisheries policies as well as developing mechanism to more effectively administer and implement national programs for the conservation, sustainable and economic exploitation and management of tuna fisheries resources.”
The purse seine bill which is awaiting the president’s signature stemmed from a proposal made by the SOCSKSARGEN Federation of Fishing and Allied Industries, Inc., of the Philippines, who will be working with the Palau Fishing Association to develop handline and purse-seining fishing methods in Palau’s Exclusive Economic Zone.
Companies engaged in fishing under these permits would be able to use altenative transshipment port other than the Malakal Port.
The measure said, these operations would be exempt from Palau’s fish export tax for a period of three years while they work to cover their start-up costs.
Through this bill and the growth of this fishing method will allow Palau to better utilize its marine resources, which in turn will help Palau develop its economy and help the national government realize more local tax revenues.
The measure restricts the new fishing method to Palauan citizens and corporations wholly owned by Palauans.
Alternative transshipment port by way of a fishing agreement is determined according to the following conditions: (1) the entity purchasing the fish from the Palauan fishing company pay the company immediately upon delivery of the fish to port; (2) the entity purchasing the fish pay all expenses associated with reporting and oversight requirements for commercial fishing activities within Palau’s Exclusive Economic Zone; and (3) the Palau fishing company continues to be required to pay taxes on its gross revenue, pursuant to 40 PNC § 1204.
The Senate believes these amendments will help protect against unsustainable fishing activities by restricting who may take advantage of these new fishing agreements.
Those against the measure said that Palau will further lose revenues from fishing which should be a multimillion industry.
