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March 18, 2009


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What about a "development tax?" That is, why not impose a tax on any new development projects, say 4% of the total cost of the project, to be used specifically for capital improvements, i.e., water, power, and sewer.

Just a thought,,,sulang

Brien Sers Nicholas

Ha Ha Ha Brien Sers Nicholas,

Please tell me who is coming to invest in Palau?

OOOOOhhhh! This is another wet dream of some Palauan dreamers who think that investors are lining-up to invest in Palau!

The same fantasy was voiced when some idiots were conviced that droves of foreigners would pay $250,000.00 for an Elite resident Visa! LOL. I was told that there has not been even one application for the VISA.

The time has come for us to face reality! Palau is not the paradise that we all immagine it is.

This does not mean Palau cannot be the paradise thar we want it to be. All the new government need do is get rid of the FIB, the EQPB and the ridiculous laws that make Palau foreign inventment unfriendly.

Investors would then flock to Palau. There would be fantastic tourist development and other international businesses.

Our hospitals, schools, infrastructure, telecommunication whould have the needed funds for up-grading.

Increasing taxes is a real trun off. Palau is already one of the most expensive tourist desitination in the Asian Pacific Region. That is the reason for tourist numbers dropping!



Pistol, respectfully, I think it is you needs to WAKE UP! By your own posting, you have agreed with me. That is, where are we going to get the monies for up-grading our hospitals, schools, infrastructures, tele-com., etc.? My suggestion about a development tax is to be used for such up-grading.

Oh, and let us not mix Palau as a tourist destination as compared to being an investment distination.


Brien Sers Nicholas

Brien Sers Nicholas,

Respectfully, I think it is you sir who are asleep and confused.

I have made it clear that raising taxes is not a solution to Palau's financial dilemma because the cost of doing business is already prohibitively high in Palau. Under the current laws and current tax system there is little or no new foreign investment coming to Palau and introducing a new development tax will only stiffle what little investment there is.

You ask me where is Palau going to get money to up-grade its infrastructure?

What I can tell you is that Palau is NOT going to find the money by introducing a new development tax.

The way for Palau to increase its GDP is to bring to Palau new foreign investments! This can ONLY be acheived by lowering taxes and giving tax incentives to investors.

New businesses will create jobs and increase revenue. This is what will bring money to the government of Palau.

Palau's main sourse of revenue will be derived from tourist trade/business. Therefore when you propose that "we should not mix Palau as a tourist destination as compared to being an investment destination", is rediculous.

Palau's main business will be centered around tourism and as such Palau needs to encourage all business that support the tourist trade.

Palau needs investment in many new hotels, in a new airport that can cater to larger aircraft, Palau needs and airline that can make Palau more accessible! Palau needs better infrastructure and Palau needs to encourage all businesses that improve entertainment, medical, banking,insurances and even search and rescue facilities.

The way to encourage investment is to give incentives not to penalize investors with taxes.

Nicholas, learn from history and learn for what our successful neighbours are doing to encourage investments!

The whole world is reducing taxes and giving incentives. What do you advise, INTRODICE NEW TAXES! BRILIANT! I don't think so!



Pete, you do raise some good points but limiting yourself to just the tourist themselves is a bit short sighted. Do you honestly believe that the money to be derived from tourists coming to Palau can finance the costs/burden of these new hotels on our infrastructures? You need to sit in one of them hotel lobbies and observe. The tourists coming down to Palau have already purchased their tour packages somewhere else. Is Palau getting a cut from these packages? I don't think so and, in fact, this is one of our many cries.

You mention learning from our neighbors. Well, guess what, our neighbors do have development taxes! By the way, don't also mix up the concept of a development tax with that of, say, room tax, departure tax, etc., which directly affects the individual tourist's pocket.

So, at the end of the day, we need to spread the tax base and not limit ourselves (as you suggest) to only the tourist themselves. Otherwise, if we follow you thinking, we will definitely kill our tourist industry! That is, the costs associated with repairing, maintaining, upgrading, etc. of our infrastructures will continue to rise and having the tourist themselves as the sole source of adressing these issues is an exercise in futility.


Brien Sers Nicholas

Well said Pistol Pete,

I would also like to add that in addition to your incentives and tax cut proposal we MUST get rid of barriers, corruption and monopolies.

Get rid of the FIB, the EQPB and the FIC. These agencies are BIG BARRIERS TO FOREIGN INVESTMENT.

The idea that the EQPB is good for the environment is flawed. The EQPB know nothing about protecting the environment.

They do not understand or realize that development and human internavtion can inprove the environment.

They do not understand that Palau needs money to sustan its people which will then sustain the environment.

What will the EQPB do if a natural disaster occurs? say a natural fire starts or say a tsunami hit Palau. What about if an earthquake hit Palau? Where will the money come from to make good the environment? Oh yes! BEG FOR HELP!

Many development and changes were made by humans on the landscape of Palau i.e the German Channel, The Compact Road, The airports. Has Palau's pristine environment been ruined? NO!

With human activities the environment must change. Nothing remains the same. The well being of the people is paramount with that the environment will also benefit.

The government must legislate wisely. There must be proper planning with zoning.

There must be proper rules and regulations for development and construction which must take into account sewage treatment and management, waste disposal and management, water supply and management, power supply and management.

The EQPB and the FIB are incapable of doing all the planning and implementation of the afore mentioned. This is the job for the government under the control of its Ministries!


...and then the minister of environment alone will have the whole development concept into his own hand in the name of foreign investment.
..and alone he will be wine and dined to permit projects in the name of foreign investment.
...and alone he will become the expert in environmental matters in the name of foreign investment.
...and alone he will be easily bought off with favors to the highest bidder in the name of foreign investment.
...and alone by his actions will scare away foreign investors in the name of foreign invest ment.
...and alone corruption rears its head
...and alone...and alone...and alone...

Forget the tourists for one second and let's look at the people that actually reside in Palau. How about we find a way to increase their income and so they'll have more to spend (not on suikang, please)?? I'm not saying forget about the tourists at all,.. just let's not plan our whole economics around them. Rather focus on our people's needs and wants... and bank on it. After all, it is easier to incentivise someone who lives in Meyuns rather than Narita, Japan.

E mekerang?


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