Tax exemptions for liquid fuel heavily opposed

by Nick Delgado

Guam - Legislation that proposes to eliminate the tax exemption on liquid fuel transshipped through Guam didn't get support from companies like Mobil, who said the legislation would destroy the transshipment business locally. Leaders in the Marshal Islands and the CNMI submitted written testimony testifying against the bill's passage. The speaker of the Marshal Islands Legislature said that it would have a negative impact and create undue hardship. 

Senator Rory Respicio, who co-authored the legislation, said, "When I talk to the leaders in the other islands I tell them that people of Guam have been extremely, extremely generous by way of housing them with their providing for their children's education needs, hospital needs, providing for their public safety. You see, that's how much it's impact our community by way of compact impact and we haven't even been getting the reimbursement we're owed for probably a half-billion dollars. When you look at something like this and for them to take a position that $0.10 more per gallon is going to hurt them, I ask them do you think deep within your minds and hearts and recognize what this impact has done to the people of Guam?"

Aside from the goal of generating revenue, the purpose of the bill is to compensate Guam for the environmental risk posed by this transshipment business. Mobil, however, testified federal law already outlines what would happen if a spill were to occur in the region.

Senator Tom Ada meanwhile expressed his disappointment that no GovGuam representative attended or provided testimony on the bill.