As the fiscal year nears its end, senators are working to finalize the Government of Guam’s FY 2026 budget

But since its release last Friday, outside concern has zeroed in on one controversial piece of the puzzle: Rolling back the business privilege tax from 5% to 4%.

At the very top of the budget bill is a proposal offering a 0.5% cut, lowering the BPT to 4.5% of gross proceeds of sales.

One of the strongest voices advocating for a full rollback is Guam Chamber of Commerce Board Chair, Tae Oh.

In a press release this morning, Oh noted, “In the past seven fiscal years, we have seen the government's budget balloon from around $700 million to nearly $1.4 billion, while our hospital environment continues to crumble, conditions of public infrastructure are questionable at best, and businesses still must face ludicrous licensing and permitting processes, where technology is nearly nonexistent.”

Oh argues there must be fair reciprocation as Guam's business community supported the government when the tax was increased in 2018, a hike meant to be temporary, adopted to offset revenue shortfalls after the federal tax cuts and jobs act of 2017. 

While in recognition of the budget process as complex and fast-paced, the chamber remains firm in their call for a full 1% rollback, even suggesting a phased approach with the first 0.5% cut taking effect on Oct. 1, and the second within the fiscal year, all spelled out in the final bill. 

Senators did go into session earlier today to review and finalize the FY26 budget, and we’ll have the full details for you tomorrow night on Primetime.