House version of supplemental budget supports some raise in taxes

The HOD also increased the amount of the budget including pay hikes for the president, vice president and the ministers.

The Senate version passed last week meanwhile scrapped all the proposed raise in taxes and the body opted to tackle it in a separate bill.

The version of the Senate also reduced the supplemental budget.

One of the sources identified by the national government to cover the supplemental budget is by way of increasing taxes.

The house however rejectedproposed increase in hotel room tax.

The president version of the bill wants it increased from the current ten percent to 15 percent.

The House version supported an increase in the departure tax paid by Palauans from $10 to $20.

It also approved the recommendation that all non- Palauan passport holders will also be paying the green fee.

President Johnson Toribiong also wants the green fee tax imposed not only on visitors of Palau but also to non-citizens.

Under the present statute, visitors will pay $35 departure tax which includes the $$15 green fee.

The delegates also agreed with the president that an additional four percent tax will also be imposed on employees earning over $25,000 a year.

This provision however will only be imposed for a year. Currently employees collecting salaries ranging from $8,000 and above yearly pay a 12 percent tax.

The house meanwhile proposed an additional three percent import tax on all imported items except for medical supplies and medicines. The president proposed only a one percent raise.

The president’s version proposed a scuba diving tax of five dollars per dive for divers,the house version only included $1 increase.

The House version removed the proposal that each non-Palauan workers, or foreigners residing in Palau register and pay $25 each for the annual alien registration.

For the proposed pay hike, the president’s salary will be raised from $50,000 to $90,000 a year; Vice president from $45,000 to $65,000 and Ministers from $30,000 to $50,000.

The House also reduced the Senate’s budget from $1,755,000 to 1,579,500 while the House increased their budget from $1,758,000 to $1,882,200.

The government is seeking additional money for its operation to fund its government operation.

The supplemental budget will cover to meet operating requirements obligations such as water and sewer system bills.

The money will be derived from the Compact of Free Association funding extension.

Under the extension, Palau has a direct assistance of at least $13 million and can withdraw at least $5 million from the U.S. Compact Trust Fund.

The April Congress regular session is slated today, both houses are expected to go into a conference committee to iron the differences in the budget.

 

 

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