Ramon B. Camacho
SAIPAN Mayor Ramon Blas “RB” Camacho does not support House Bill 23-41, which would impose a tax on imported pugua, or betel nut, and imported afuk, or lime.
“I firmly believe that it is not the right approach at this time,” Camacho said in a letter to Senate Vice President, Donald Manglona, chair of the Senate Standing Committee on Fiscal Affairs, which is reviewing the bill.
H.B. 23-41 was authored by Precinct 3 Rep. Marissa Flores and was passed by the House in October.
The Senate Standing Committee on Fiscal Affairs will discuss the measure when it meets at 10 a.m., Thursday, Feb. 22.
H.B. 23-41 proposes a $5 excise tax on each pound of imported betel nut, and a 10-cent excise tax on every ounce of imported lime mix.
The measure would appropriate 50% of the tax collections to the Health Network Program or medical referrals, specifically for oral cancer patients’ stipends; and 10% to the Customs and Biosecurity Division for its operations.
In his letter, Camacho called for a “comprehensive study” on the effects that pugua and afuk have when combined.
“While it is understood that the chewing of betel nut with tobacco causes health risks that may lead to cancer, it is still unknown whether the chewing of betel nut with [afuk] also leads to significant health risks,” Camacho said.
He added that with no solid evidence regarding the combined effects of the two substances, “it would be premature to impose such a tax on the people of the CNMI.”
Camacho noted that another House bill before the Senate, H.B. 23-07, would modify the tobacco tax rate to impose “a tax hike on the people of the CNMI.”
Customs and Biosecurity Director Jose Mafnas has expressed support for the passage of H.B. 23-41, which he said would provide revenue to fund his division’s operational costs.
For her part, Esther Muna, Commonwealth Healthcare Corp. CEO, said “it is fitting” that the tax revenue generated by the bill would go toward oral cancer patients, but she also requested “greater flexibility” in how to use the funds.
But Crispin Sablan, who owns Sablan Betelnut Distributors, told the Senate that the measure would “kill” his family business. Sablan sells pugua and afuk imported from Yap.
For her part, a store owner in Koblerville said her customers are already complaining about the price of pugua and afuk. “Customers ask ‘why very expensive?’ so of course no need tax,” she added.
