KOROR, Palau — Palau’s government collected over 60% of its projected tax revenue for fiscal year 2024 by the end of the second quarter, according to a financial report released by the Ministry of Finance.
The report, issued by Minister Kaleb Udui Jr. on March 31, 2024, shows strong performance in key tax categories. Total tax collections reached 66% of the projected $44.2 million for the year.
The Palau Goods and Services Tax (PGST) exceeded expectations, with collections reaching 104% of the projected $13.1 million for the first half of the fiscal year. This suggests the government could potentially collect double the projected amount by year-end.
The Business Profit Tax, a new levy under the recent tax reform, also performed well, surpassing initial projections by 173%.
“Revenue collections seem to be on track, with most revenue-generating items and services at least at 45% collected,” the report states.
Other notable collections include $4.4 million for fishing days, $1.1 million for ship registry fees, and a 123% increase in port usage fees compared to projections. Digital residential fees also saw a significant increase, exceeding projections by over 800%.