In the Senate version of the Fiscal Year 2011 financial package approved on Friday, the senators said that the budget bill “is not the appropriate platform” for the enactment of the new taxes.
The Senate deleted the entire provision from the House of Delegates version of the budget.
The HOD earlier passed on third and final reading some of the proposed taxes which they said will generate local revenues of at least $36 million.
The delegates proposes in its version of the FY2010 budget that the government impose a 35 percent increase in water utility charges and an additional import tax of three percent tax a two percent increase in taxes on wages and salary earning beyond $25,000.
The HOD also supported a proposed scuba diving fee of $5 per day of diving.
A hotel room tax increase of five percent, departure tax increase of two percent and port use fees of nine percent.
The House said that this revenue enhancing measures will have minimal or no significant in the citizens and residents of Palau.
These new measures are projected to raise no less than $2 million in additional local revenues.
