THE House of Representatives on Thursday passed House Bill 23-41 which would impose an excise tax on imported betel nut and lime mix.
Seventeen of the 19 House members present voted for its passage, and one voted against it. Rep. Patrick San Nicolas was excused.
Authored by Rep. Marissa Flores, H.B. 23-41 now goes to the Senate.
The bill would impose a $5 excise tax per pound (not per 20 pieces as earlier reported) of imported betel nut or fractional equivalent, and 5 cents per ounce or fractional equivalent of imported lime mix.
The revenue to be generated will go to medical referral services and the Division of Customs and Biosecurity (not the Commonwealth Cancer Association as earlier reported).
The bill stated that the tax could be a “possible deterrence mechanism” and a “health benefit” if sales decrease as well as a “financial benefit” if sales increase. The CNMI would gain a significant benefit from either scenario, the bill added.
The intent is to impose a tax on imported betelnut and lime mix, and not on local betel nut and lime mix.
Casting the lone no vote was Rep. Thomas John DLC Manglona, who noted that inflation is among the economic challenges the CNMI is facing.
He said he didn’t feel that raising taxes is the solution at this time. He said he understands that legislators need to find ways to generate revenue, but tax measures are not in the best interest of the people.
“This is a tough decision, but I want to follow my heart,” Manglona said.
Flores, for her part, said “we are here to provide solutions,” adding that “we got two choices: No. 1 raise taxes, and No.2, layoffs.
“I think we all agree that we don’t want to lay off anybody. We don’t want to close our government,” she said, adding that they have reduced government working hours so that “we could still protect our people and give them an opportunity to work.”
