Speaker Terlaje proposes the elimination of liquid fuel tax
By Pacific Island Times News Staff
Speaker Therese Terlaje today introduced a pair of bills that she hopes would alleviate these heavy burdens for consumers, noting that the government of Guam has enough revenue to lift fuel tax.
Bill 260-36 proposes to repeal Public Law 34-44, which increased the liquid fuels tax rate by 4 cents per gallon in 2017. The second measure, Bill 261-36 proposes to eliminate the liquid fuels tax altogether.
“With over $794 million in assistance from the federal government for infrastructure through the American Rescue Plan and the Infrastructure Investment and Jobs Act, it is critical that we provide relief to Guam taxpayers while utilizing these federal funds to continue progress on improvements to our roads,” Terlaje said.
The speaker said she recognizes that the oil market is far beyond the control of the government of Guam, however, the reduction of taxes during times of financial hardship for residents and businesses alike falls solely on the shoulders of the Guam Legislature.
In addition, the latest Consolidated Revenues and Expenditures report shows that the government revenues are tracking $46 million above projections.
Terlaje added, “As policymakers, we must continue to find ways to mitigate rising prices for the people of Guam from our gas pumps to our grocery stores. While it is a challenge to continue to provide critical services while inflation is at a peak, we can be fiscally responsible while balancing the needs of taxpayers and residents and keeping the cost of government at a sustainable level.”