The decision of the Guam Legislature to put Bill 279-31 to the floor for action alarmed Senate President Paul A. Manglona and other CNMI senators.
In an interview yesterday, Manglona, Ind.-Rota, said the bill introduced by Guam Sen. Tom Ada is now being considered for action by Guam lawmakers.
Although no one voted to recommend passage of the bill, four of the committee members who reviewed it voted to put the measure on the floor.
The CNMI Senate adopted a joint resolution two months ago urging Guam senators to reject the measure as it would adversely affect the commonwealth economy.
CNMI senators said lifting the fuel tax exemption will cause oil price increases and Micronesian islands that are already suffering from the high cost of oil will have to pay more.
According to CNMI Senate Joint Resolution 17-16, “Although applying the fuel tax oil companies that utilize Guam as its transshipment center will generate additional funds for the island of Guam, the CNMI, particularly Rota and Tinian, will be detrimentally affected by the resulting increased cost of fuel.”
Manglona said he is confident that the relationship long established by the people of the Marianas chain — Guam and the CNMI — as one Micronesian family “will continue to bear fruit for everyone.”
The “good neighbor policy,” he noted, always serves everyone’s interest and ensures “strong ties among us as Pacific islanders.”
Manglona said they understand that the people of Guam are suffering, too, but imposing a tax on fuel transshipment will make life more difficult for everyone in the region.
For his part, Sen. Ralph DLG Torres, R-Saipan, said he is urging Guam senators to “please take consideration of their neighbor’s current economic situation.”
He added, “Look at the rates of gas now. It will be very difficult for the CNMI to deal with a drastic increase again, once the tax exemption on Guam is lifted. So we ask them to please not pass the bill.”
Guam serves as major transshipment center of Micronesia. Its government granted fuel tax exemption due to economic benefits derived from such transshipment and redistribution services.
Ada said his bill is in response to environmental concerns in light of the recent oil spills in the Mexican Gulf.
