By Emmanuel T. Erediano
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Variety News Staff
THE House Ways and Means Committee is seeking more comments from businesses and government agencies on two measures proposing to exempt small businesses in the CNMI from certain taxes.
During its Tuesday meeting, the committee discussed several bills, including House Bill 24-95 and H.B. 24-98.
H.B. 24-95, authored by Rep. Thomas John DLC Manglona, aims to enhance economic opportunities for small businesses and local farmers by establishing new gross revenue tax exemptions, clarifying export treatment, and simplifying tax administration in the CNMI.
H.B. 24-98, introduced by House Floor Leader Marissa Flores, would provide tax relief for taxpayers operating at a net loss under the Northern Mariana Islands Territorial Income Tax.
Both bills were tabled at the authors’ request to allow more time to gather input from stakeholders.
Manglona said H.B. 24-95 is intended to provide relief for small businesses in the CNMI. “I know the measure will still require a lot of consideration because it will affect government revenue, but it is my way of helping small businesses, especially in these trying economic times,” he said.
He added that since introducing the bill last month, he has yet to receive comments from government agencies and wants to allow more time for feedback from both agencies and the public.
Regarding H.B. 24-98, Flores said discussions about protecting small businesses during difficult times are very important. “The fact that businesses are paying two taxes — the business gross revenue tax and the NMI territorial tax — is, I think, unfair, and we need to figure out a mechanism to protect the small businesses that are still open,” she said.
Her bill aims to reduce business closures, “because we have seen many businesses closing,” she added. Flores argued that if a business is operating at a net loss, it should not be required to pay additional taxes “to a bloated government that cannot even reduce its own workforce but continues to take from businesses.”
She also criticized the government for giving pay raises to employees while businesses struggle. “Is that fair? Absolutely not,” she said.
Although the Commonwealth Economic Development Authority has expressed support for her bill, Flores suggested meeting with CEDA again to improve the proposal. She also hopes to invite the Finance secretary, “because we know that $72 million is what we get in BGRT annually, which supports half of our government.”
Emmanuel “Arnold” Erediano has a bachelor of science degree in Jo1urnalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
