The proposal was introduced by Guam Sen. Tom Ada and, according to Senate Floor Leader Pete P. Reyes, R-Saipan, is likely to be discussed by the Guam Legislature next week.
Guam serves as major transshipment center of Micronesia. In response to environmental concerns following the recent oil spills in the Gulf of Mexican, Ada’s Bill 279-31 will impose a tax on transshipment of fuel on Guam.
Except for Saipan which has its own shipment deal with oil importers, the other islands in Micronesia, including Tinian and Rota, depend on the fuel shipments from Guam.
The removal of the fuel tax exemption will cause oil price increases on islands that are already suffering from high oil costs, the CNMI Senate said.
Reyes, who introduced Senate Joint Resolution 17-16, said this was the second time that Ada proposed to remove the fuel tax exemption.
He said such legislation “is not the type of spirit of cooperation” displayed in the Association of Pacific Island Legislatures general membership meeting in Palau recently.
APIL members, which include Guam and the CNMI, are supposed to help each other, he added.
Reyes said he was assured by Guam Speaker Judith T. Won Pat and Vice Speaker BJ Cruz that they would oppose Ada’s bill.
Sen. Juan M. Ayuyu, Ind.-Rota, said he will ask Rota Mayor Melchor A. Mendiola, the president of the Association of Mariana Islands Mayors, Vice Mayors and Municipal Council Members, to urge Guam mayors not to support Ada’s bill.
