Overview:
Are Palauans becoming “tourists” in their own country? This opinion piece challenges the claim that the Palau Goods and Services Tax is paid only by visitors, arguing that ordinary Palauans bear the cost every day through higher prices for food, fuel and other essentials. The writer calls for tax relief on necessities and policies that put household realities ahead of economic-growth slogans.
Dear Editor,
President Whipps has repeatedly claimed that only tourists pay the Palau Government Stress Tax (PGST). But walk into any store, fill your car with fuel, or pay your electricity bill, and you will see the truth: Palauans are paying this tax every single day. If PGST is built into the price of goods and services, then every consumer, citizen or visitor, is carrying the burden. That means we are no longer Kot era Chad er Belau (Palauan People First). We have become “tourists” in our own land, forced to pay while corporations enjoy credits and even refunds when their products don’t sell.
This is not just an accounting trick. It is a worldview. The administration tells us to “budget better” and “manage our money” as if the problem is personal discipline. But that thinking is out of touch with reality. Seventy percent of Palauans earn $15,000 or less per year. At that level, no amount of budgeting can stretch far enough when fuel costs $8.12 a gallon, food prices keep rising, and customary obligations remain part of our daily lives.
Meanwhile, corporations benefit from PGST credits, and even the U.S. military is exempt from paying the tax. So who is really carrying the load? Ordinary Palauans. We are told this economy is like a rising tide that lifts all boats. But the truth is only yachts are rising. The rest of us are in canoes with holes, bailing water just to stay afloat.
This is not just about economics. It is about leadership. A government that claims to put people first cannot continue policies that widen the wealth gap and ignore the struggles of the majority. When leaders dismiss the pain of families, they reveal that their vision of “development” is built on American business culture, not Palauan realities.
The Silent Majority says clearly: the people are struggling. The PGST is not helping us; it is drowning us. Relief must come from removing taxes on essentials like food and fuel, taxing corporations that benefit from exemptions, and designing policies that reflect the actual cost of living in Palau.
Economic growth is meaningless if it only benefits the few. The people who make this economy possible deserve better.
Everything for Everyone and Nothing for Ourselves. That is the principle of true leadership, not slogans, not smoke screens, but policies that lift the people first.
Your Humble Servant
Dudalm Kelulau