Rev&Tax Proposes Taxing Internet Purchases


If you shop on Amazon, Ebay or Walmart your purchases could soon be taxed.

Guam – The administration is proposing a tax on internet sales. During a budget hearing yesterday Vice-Speaker BJ Cruz asked the administration how they planned to reach their revenue projections for FY17. One of their ideas is to tax purchases made online.


 If you shop on Amazon, Ebay or Walmart your purchases could soon be taxed. That’s if the Calvo administration follows through on a proposal they made to tax online commerce. “John was thinking about an internet tax and it sounds great and I know that there’s an ability to be able to do that I’m aware that there are some issues with Amazon and a couple other places on how to be able to address that,” said Cruz.

 Vice-Speaker B.J. Cruz is referring to an idea from Rev&Tax director John Camacho. The idea was brought up during a budget hearing yesterday(Thurs) as part of the administrations ten point plan to raise revenues for FY17. “But it didn’t sound like they had vetted it and had actually discussed it before the executive budget was sent out it sounded like they talked about it last week,” said Cruz.

 The Vice-Speaker says another part of this ten point plan involves taxing air bed-n-breakfasts. They also want to improve their collections of taxes that aren’t being paid. “I’m glad that they’re at least thinking about a ten point plan on how to increase revenue collections but it really just is a ten foot ladder in a hundred foot hole and how do we get out of that hole is more important to me or how do we prevent from digging ourselves further down. I keep trying to remind everybody the first rule about holes is stop digging and if we continue to over-project and think that we can spend we’re just gonna get deeper and deeper into the hole,” said Cruz.

 Overall the Vice-Speaker says he wasn’t satisfied with the answers provided by the administration as to how they would arrive at their projected $981 million in revenues for fiscal year 2017.