24 Apr 2009

President of Palau will not be raising taxes

10:36 am on 24 April 2009

The President of Palau Johnson Toribiong will not be raising taxes to increase local revenues.

President Toribiong made the announcement in his State of the Republic Address yesterday.

The Marianas Variety quotes him saying although the country is suffering from a continuing shortfall in local tax revenues, he will not be taking the approach of raising taxes.

President Torbiong says the people who are paying taxes in Palau are the very same people whose businesses are suffering or whose jobs are in jeopardy as a result of the slowdown in the economy.

He added that raising taxes will force businesses to close down and layoff of people which will just decrease local tax revenues even more.