Delegate Swenny Ongidobel who chairs the House Committee on Commerce and Trade says his committee will report out and endorse the passage of House Bill 8-10-1.
Delegate Ongidobel in a press statement said that ‘the Committee is much more comfortable to move forward with passage of this bill now that it has received a Resolution from Melekeok State Government endorsing the bill.”The Committee held a public hearing recently with residents of Melekeok State to solicit their input on the proposal.The committee said that it had received overwhelming support from the residents. The statement said that among those who attended the hearing, were prominent citizens of Melekeok, namely Olikong-Polycarp Basilius, Legislator Danny S. Ongelungel and other current and past members of the state legislature. Ongidobel said that he anticipates smooth passage of the bill by the delegates during the coming Third Regular Session and have the bill transmitted to the Senate for their action.Ongidobel added that there is still time however, from now until the session starts in two weeks, for anybody who wish to submit comments to be considered during the committee’s final deliberation on the proposed legislation.Delegate Ongidobel is working closely with staff and members of the Committee to make sure that the final version of the bill reflects the comments received during the public hearing.Ongidobel stressed in his statement that “the House Commerce and Trade Committee is remindful of the many contributions of the people of Melekeok towards our nation building. First they willingly donated the land property from which the National Capitol sits today and recently Melekeok State government again donated a land, situated near the Capitol, upon which to be built a National Archive Building.”The proposed “National Capitol Complex Tax Free Zone Act,” will create a tax free zone extending two miles in every direction from the center and the dome on the Olbiil Era Kelulau. President Johnson Toribiong introduced the bill saying that despite the government move to Babeldaob, there is still a slow but steady movement of people to the area.He said this is because of lack of businesses in Babeldaob and that the short term tax incentives to help development there.The new bill will extend gross revenue, import and export tax incentives to new and existing businesses located within the tax free zone.The measure also said that the tax incentives to an existing business are for a period of two years so that this is to encourage existing business to continue in operation and to put them on a par with new businesses taking advantage of the tax incentives.The bill proposes tax incentive to a new business for a period of five years and it added that in the event that the tax incentives are not used properly then there is a provision that terminates it and recaptures the taxes that would have otherwise been paid.
