The Palau President Tommy Remengesau Junior has proposed in the fiscal year 2008 budget that the export tax for tuna be increased to $1 US dollar per kilo, up from 25 cents per kilo.
But the Palau Congress approved a 10 cent hike when it passed the 2008 budget, raising the tuna tax to 35 cents.
Pacific Magazine quotes President Remengesau Junior as saying that the Palau's billion dollar fishing industry can still survive if a $1 per kilo tax is imposed on tuna exports.
The president said that the government is getting peanuts and Palau should be getting more from the fishing industry.
Only two of the eleven tax reforms proposed by the President were approved by the Palau Congress.