Sen. Joel Toribiong, vice chairman of the committee in an interview said that the proposed increases in taxes should be address in a separate bill and not lumped into the proposed supplemental budget.
Toribiong however did not want to call it a rejection of the taxes but members wanted it to be placed in separate bill.
The Senate held a special session yesterday to deliberate on the proposed measure. As of press time the senators are still holding a session on the measure.
Sen. Mark Rudimch, chair of the committee in an earlier interview said that members of the panel “heavily considered” the inputs made by various sectors on the budget especially the tourism organizations.
The tour organizations have opposed the proposed increase in taxes saying that it will impact the tourism industry.
Members of the committee has been meeting last week to reach a consensus on the matter.
The president is asking the Olbiil Era Kelulau an additional sum of $3,613,000 to supplement the general operations of the national government. If the proposed taxes are to be considered, the supplemental budget would have reached to about $4,800,000.
The panel reduced it to $4,256,400.
In the supplemental budget the president included a proposed increase in hotel room tax from the current ten percent to 15 percent.
A scuba diving tax of $5 per dive for divers was included in the proposed taxes in the supplemental budget.
The supplemental budget has also proposed an increase in the departure tax paid by Palauans from $10 to $20.
The president also recommended in the supplemental budget that every April of the year, each non-Palauan workers, or foreigners residing in Palau register and pay $25 each for the annual alien registration.
An additional four percent tax imposed on employees earning over $25,000 a year was also recommended.
This provision however will only be imposed for a year. Currently employees collecting salaries ranging from $8,000 and above yearly pay a 12 percent tax.
The government will also want an increase in import tax on food and medicine.
In the supplemental budget the president is requesting nearly a $1 million for his office which is an additional $200,000.
The president also wants the measure expedited since the Executive Branch is ready to submit the proposed Fiscal Year 2011 budget.
