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Commerce mulls increases in fees, filings
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Posted on Feb 22 2006
Amid a serious lack of government funding, the Department of Commerce is planning to increase fees on alcohol, beverages, tobacco, and corporation filings.
“We are coming up with revenue generating measures. We want to increase fees. We’re looking at increasing Alcohol, Beverage and Tobacco fees as well as corporation filing fees,” said acting Commerce Secretary James A. Santos in an interview on Tuesday.
He said that, based on initial discussions, the proposed fee increase would be “more than 20 percent.”
Right now, he said ABT fees amount to $55 a year.
“It’s probably more than a 20-percent increase. We are coming up with different scenarios,” he said.
He said the issue was raised during Tuesday’s Cabinet meeting at the Governor’s Office.
His office has yet to come up with a final proposal.
“We need to get the blessing of the governor. We want to be in sync with the governor’s economic recovery plan,” said Santos.
Gov. Benigno R. Fitial had expressed opposition to any form of tax or fee increases while he was a member of the Legislature.
The Saipan Chamber of Commerce has always objected to such increases, saying that the government needed only to be creative in its collection efforts to get the needed funding.
Former SCC president Alex Sablan said the government has millions of dollars in uncollected revenues.
He had cited the existence of an “underground economy,” with some $30 million to $50 million in potential revenues.
He had suggested that resources be allocated where needed for an audit team under the Finance Department that would beef up tax enforcement and collection.
