Palau reported $4.2 million in revenue from Palau Goods and Services Tax after the first three (3) months of the PGST tax implementation. 

Although January 2023 was the enactment date of the Palau Goods and Services Tax law, the government did not estimate the amount to be collected in the initial three months.  This tax is collected from the registered PGST companies and is a new revenue under the government financial report to Congress.

Business Gross Revenue Tax collected during the same period was $3,684,245, bringing total FY 2023 2nd Quarter revenue to 53% of the projected GRT.

The amount of GRT collected during the second quarter of FY 2023 is higher than the amount collected in the first quarter, which was $3,272,488, according to the Ministry of Finance report.  Notably, the revenue collected for GRT companies in the 2nd quarter is higher than that collected during the 1st quarter, period before PGST was enacted.

Comparing GRT collections between the 1st and 2nd Quarters of FY 2023, the difference is only 12% more from the GRT companies. 

Based on the current trend, Palau can gain an additional $8 million in the next six months from PGST income.  Also, based on current numbers, Palau will not lose GRT revenue, possibly hitting its financial goal of $13.13 million for FY 2023.

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