Ministry of Finance reported 54% tax collection in the 2nd Quarter Local Revenue Collection Report.

The quarterly report showed a collection of $6.9 million of Gross Receipt Tax, slightly over 50% of the projected collection for the year.  The cumulated PGST tax is still at $4.2 million, which was not projected in the budget for this year.

The report showed that $6.9 million in GRT collections is unusual, given that many large companies were moved to PGST tax bases.

During the discussion on the 2nd supplemental budget this week, Senator Eldebechel referred to the funds as a possible source for the budget items in the supplemental budget rather than tapping into the rainy day fund, or the Cyclical Funds.  This fund is supposed to be Palau’s savings in case of disruption in the food supply due to some type of national emergency.

Other taxes, including hotel room tax, wages and salaries, general import, and all others, are below 50% collection as of March 31, 2023.

Overall, Palau has collected 56% of the projected revenue for this Fiscal Year.

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