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Gas tax holiday proposed
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Posted on Apr 23 2008
A local lawmaker has proposed to reduce gas prices by suspending the liquid fuel tax for two days a month.
Rep. Ray Yumul, sponsor of the bill, says the measure would provide immediate relief from the skyrocketing cost of fuel in the Northern Marianas.
Yumul’s proposal of a “gas tax holiday” is not unique. Sen. John McCain, the Republican candidate for U.S. president, last week floated a similar idea as part of his economic plan.
Under Yumul’s bill, the CNMI government will be required to waive the fuel tax for two days each month if the price of retail fuel at the pump is over $4 per gallon.
The gas tax holidays will be observed for a 24-hour period on the second and third Friday of each month.
The liquid fuel tax amounts to 15 cents a gallon.
In an interview, Yumul said the gas tax holiday will benefit consumers without hurting the oil firms. The only disadvantage will be to the cash-strapped government, which will lose about $160,000 of revenue from the measure.
The bill also authorizes the CNMI government to reduce or waive the fuel tax imposed on airlines and commercial vessels.
Currently, the retail prices for a gallon of fuel sold on Saipan are $4.32 for regular unleaded gasoline, $4.51 for premium unleaded gasoline, and $4.77 for diesel.
On Rota, the retail prices for a gallon of fuel are $4.99 for regular unleaded gasoline and $5.55 for diesel.
On Tinian, a gallon of fuel is sold at $4.83 for regular unleaded gasoline and $5.09 for diesel.
