In a letter to both leaders of the House and the Senate leaders, the president said based on consultation with a potential Japanese investor, he is recommending several provisions that he wants the lawmakers to consider.
The president in his letter stated that instead of an eight percent gross taxes imposed on the concession holders is reduced instead to four percent.
Toribiong also informed the lawmakers that the investments that can be received from the pachinko can be as high as $50 million.
It was also recommended that the bill be amended to include the requirement of established virtual Pachinko office in Palau to create employment.
Toribiong earlier returned to the OEK the proposed measure saying that the existing law itself is not generating revenues.
The president said in its transmittal letter to the OEK leaders said that the measure is similar in some respect to the casino gambling measure which he vetoed in November.
He however did not reject the measure outright because unlike casino gambling, the pachinko will not directly impact the community.
He added he has fundamental problems with the measure that is why he is referring back House Bill 8-7-1, HD2, SD2 to Congress.
In a special session last week, the House of Delegates tried to pass the measure taking into consideration the president’s recommendation.
The delegates however deferred passage.
Under the measure rules and regulations will be promulgated and the Finance Minister will be authorized to grant an experimental exclusive up to two Virtual Pachinko Concessions to, and execute a Pachinko Concession Agreements with, any person and to organize and operate a Virtual Pachinko Business, and to grant an exclusive up to two Internet Digits Lottery Game to Paragon Investments International Incorporated (“Paragon”) for the operation of an internet digits lottery games within the Republic.
The term of each Concession Agreement will not exceed five years.
Each Concession Agreement shall provide for a minimum annual Concession fee of eight percent of the total gross receipts gross revenue realized from the operation of each Virtual Pachinko Business or Internet Digits Lottery Game Business in Palau.
The annual fee will be $250,000.00 per year payable semi-annually.
Palauans are prohibited in playing pachinko.
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