The president is asking the Olbiil Era Kelulau an additional sum of $3,613,000 to supplement the general operations of the national government.
In the supplemental budget the president included a proposed increase in hotel room tax from the current ten percent to 15 percent.
An increase in the departure tax paid by Palauans from $10 to $20 was also proposed.
The $5 will be for hospital care fund while the other $5 will go to the Micronesian Games fund.
Non- Palauan passport holders will also be paying the green fee. The president wants the green fee tax imposed not only on visitors of Palau but also to non-citizens.
Under the present statute, visitors will pay $35 departure tax which includes the $$15 green fee.
An additional four percent tax will also be imposed on employees earning over $25,000 a year.
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.
He said that revenues collected from this provision will allow the government to pay a certain portion of its obligations.
The government’s unpaid obligations reached to over $11 million.
An additional one percent import tax on foodstuffs was also proposed.
Foodstuffs are alcohol beverages, beer, liquor, wine and carbonated drinks.
The present law imposes a 25 percent tax on alcoholic beverages while three percent import tax on carbonated drinks.
A scuba diving tax of five dollars per dive for divers was included in the proposed taxes in the supplemental budget.
He also recommended 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.
The proposed increases in taxes once approved will translate to an additional $500,000 in revenues for Palau.
The government is seeking additional money for its operation to fund its government operation.
The supplemental budget will cover to meet operating requirements obligations such as water and sewer system bills.
The money will be derived from the Compact of Free Association funding extension.
Under the extension, Palau has a direct assistance of at least $13 million and can withdraw at least $5 million from the U.S. Compact Trust Fund.
