Business group slams administration for inflating bureaucracy while private sector is mired in depression
By Mar-Vic Cagurangan
The Guam Chamber of Commerce on Thursday asked the administration to roll back the business privilege tax to its pre-2018 level, saying the private business sector has not been getting any reprieve from the impact of the Covid-19 pandemic.
While resenting the sparse government support throughout the pandemic, the chamber lambasted the administration for hiring new people and inflating bureaucracy while the private sector is struggling to stay afloat.
"It is imperative that relief be given to ensure that this tax base is preserved," the chamber said in a press statement.
The BPT was raised from 4 percent to 5 percent in March 2018 to help the government bridge the projected $67 million funding gap created by the Tax Cuts and Jobs Act of 2017.
"What has manifested over the last couple of years is that there was little to no impact on government collections, and this additional 1-point increase (25 percent) has been the source of collections well over the government’s need to support its operations," the chamber said.