Inos said the remaining businesses in the CNMI “will not be able to sustain any additional tax burden” at this time.
Public Law 16-2, however, has increased the driver’s license fee, among other government services fees, and the administration is now “looking at making adjustments in the general business license fees,” Inos said.
“Of course, the Legislature is free to initiate tax hike legislation, but the administration doesn’t see that as a possibility — the economy cannot sustain any additional tax burden,” he added.
The administration, he said, will revisit its economic projections to prepare for fiscal year 2009, which starts on Oct. 1.
He said the tourism industry will remain the backbone of the islands’ economy but there are exploratory talks to introduce new industries here. He declined to elaborate.
According to Inos, the administration continues to present the CNMI as an ideal tourist destination and investment site among foreign investors.
“But there are many things that currently affect business opportunities,” he said. “The cost of power for example is a disincentive for an investor but we’re doing other things to mitigate that. We’re trying to explore alternative energy. We’re trying to make our power plants more efficient. We’re looking for other ways to cut the utility cost.”
He added, “It’s not the end of the world. It’s just that it’s going to take a little while before we see improvements. Everyone else is experiencing these challenges, even the United States.”
