Aguon proposes rolling back liquid fuel tax hike - KUAM.com-KUAM News: On Air. Online. On Demand.

Aguon proposes rolling back liquid fuel tax hike

Posted: Apr 12, 2018 12:59 PM Updated:

In contrast to the recent steady barrage of rising taxes and fees, legislation has been introduced to actually rollback a tax increase. Senator Frank Aguon, Jr.'s bill would repeal the $0.04 hike in the liquid fuel tax passed earlier this year.

Aguon's bill would restore the fuel tax to its prior level. The tax is meant to fund village street improvements, but Aguon says there is already enough money without the increase to pay for the administration's road plans, noting,  "$2 million coming from federal funds, $1.8 million coming from the Guam Highway Fund appropriated by the legislature. So it tells me that on an annual basis approximately $3.5 million to $3.8 million can be identified to repair village street roads."

Aguon blames previous diversions to other government projects for depleting the street repair fund, but the senator's voting record shows he supported past bills that took money for other priorities. It's not so much a contradiction he insists, but rather listening to what the people want them to do.

"I admit that there have been diversion of funds that I have supported in the past but one of the things that we need to do is we need to right-size this government. We need to get back on track and ensure that the funds that are allocated for specific purposes are utilized for that," he told KUAM News.

The highway fund is the main source of money for road projects in all villages that was announced by DPW late last year.

A public hearing on Aguon's bill is pending.

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