That means stores will pay 16.89 cents more to the CNMI government for every 16.89 fluid ounce of bottled drinking water they sell.
But consumers will end up paying the extra tax as retailers are expected to pass it to them.
Rep. Sylvestre I. Iguel, Covenant-Saipan, introduced House Bill 17-26 or the Imported Bottled Water Excise Tax Act of 2010.
“The Legislature finds there is a need to impose an excise tax on bottled drinking water imported into the commonwealth to provide additional revenue for the commonwealth….
There is imposed upon all such persons selling imported bottled drinking water an excise tax in the amount of one cent per fluid ounce or fractional equivalent thereof,” H.B. 17-26 reads.
The Department of Finance projects government revenue this incoming fiscal year 2011, which starts on Oct. 1, 2010, will drop to $137 million.
The earlier estimated revenue for FY 2010 was $162.820 million which would actually go down to $150.5 million after yearly appropriations for certain bonds and other financial obligations are deducted.
Retailers said thousands of bottles of drinking water are sold to different types of consumers every month.
Tourists consume them the most as residents buy the bulky gallons from local businesses that treat water.
