In a Dec. 2 letter to Guam Speaker Judith T. Won Pat, Jacklick raised concern about the legislation, noting that the Marshall Islands “has been one of the beneficiaries of the tax exemption.”
He said if the legislation passes, fuel prices will go up in the Marshall Islands.
The Guam Legislature bill states that by eliminating the exemption on fuel that is transferred from Guam storage facilities for distribution to islands in the Micronesia area, Guam will generate an extra $2.6 million in revenue annually. The bill said that Guam takes on risk from transshipping fuel and it is “prudent and necessary to remove the fuel tax exemption granted by current law in order to generate revenue to fund environmental protection efforts.”
Guam estimates that about 28 million gallons of liquid fuel are transshipped through Guam annually for the Micronesia area.
The bill proposes taxing fuel for transshipment at 75 percent of the tax rates for liquid fuel, which are currently 10 cents per gallon for diesel, 4 cents a gallon for jet fuel, and 11 cents per gallon on gas and other fuels.
Jacklick appealed to Won Pat, saying the Marshall Islands looks to Guam “as a leader in its endeavor to bring economic promotion and stability to the Northern Pacific,” and wanted to continue working with Guam leaders “to develop strategies to get our economy on strong footing.”
Jacklick acknowledged he had no voice in the Guam Legislative, saying he wanted to express his concern as an island neighbor.
“I hope your colleagues will consider the negative impact the amendment will create for our lives in the Marshall Islands,” he said.
