THE author of House Bill 23-41, which proposes to “establish an excise tax for betel nut/areca nut and lime mix/afok/bweesch,” said it would support pugua distributors who sell local måma’ or pugua and its various components.
“We do see there is a great monopoly coming in from the import side that will handicap locals on island who want to compete for free enterprise,” said Precinct 3 Rep. Marissa Flores.
She said the vast majority of pugua sold on Saipan is imported from Yap, despite the presence of locally grown pugua.
“We want to give our residents who are in that business an ability to compete fairly. We also want to tax the import because we do see they are importing much, much more than what’s on the local market,” Flores said.
Her bill has been referred to the House Committee on Ways and Means whose chairman, Rep. Ralph Yumul, said they will seek comments from the Division of Customs Services.
According to the bill, it would amend the Commonwealth Code to add a $5 tax per 20 pieces of imported pugua, as well as a 5-cent tax per ounce of imported åfok/bweesch.
There would be no tax levied on local måma’.
The bill’s “findings and purpose” state that it would also deter the development of oral cancer in the CNMI.
“To minimize the development of such a malignant illness, the Legislature finds that it would be appropriate to establish a tax for purchasing both the [pugua] and lime,” the bill stated.
Eighty percent of the taxes collected would go to the Medical Referral Services Office for “oral cancer stipends,” with the Medical Referral Services Office director as the designated expenditure authority of those funds.
The remaining 20% would be allocated to the Commonwealth Cancer Association, with that organization’s executive director as the designated expenditure authority.
Marissa Flores
