Guam – Senator Tom Ada says that fuel coming into Guam is charged a through-put rate of forty cents per barrel while fuel transshipped through Guam is only charged nineteen cents per barrel.
The senator says this is even more reason to consider his bill that would lift the current tax exemptions on liquid fuel that is transshipped to Guam.
The senator says that it begs the question of whether or not gov Guam is subsidizing this transhipment with the lower through-put charge in addition to the tax exemption. This is critical says the senator because the port is planning on raising tariffs in order to borrow the $50 million needed for port modernization.
“We are then going to hold these subsidies in place and then have the people of Guam bear the full burden of any tariff increases in order to be able to service new debts because of this thing about not wanting to impact the neighboring islands?” retorted Ada.
The senator says there is no intent to cause any increase in costs to the neighboring island the intent is to find new sources of revenue to meet the growing needs of the cash strapped Government of Guam.