Overview:
A proposed citizen rebate may offer short-term relief from Palau’s rising cost of living, but this opinion piece argues that rebates do not address what the writer sees as the deeper problem: the impact of the Palau Goods and Services Tax on household budgets. The writer calls for lawmakers to consider removing PGST from essential goods such as food and fuel.
Dear Editor:
Palau lawmakers have proposed a citizen rebate to offset the rising cost of living. On paper, it sounds like relief. With fuel now at $8.12 a gallon and basic goods climbing higher, families are desperate for help. Supporters argue that rebates would provide immediate assistance, while critics question whether such a program is fiscally sustainable or even administratively feasible.
But here’s the deeper issue: rebates are only a band‑aid. The real wound is the Palau Government Stress Tax (PGST). Ordinary citizens pay this tax at the cash register, while businesses can claim credits or even refunds on unsold items. That means corporations are shielded while families carry the burden.
Some lawmakers defend PGST with arguments that sound more like comedy than economics. One says, “If I make $5 an hour and bread costs $3, I still have $2 left, so that’s good.” This is I.R. Baboon math at its finest. Another insists that the old Gross Revenue Tax (GRT) was bad because government couldn’t collect enough. But cost of living has nothing to do with tax collection. It has everything to do with wages, prices, and whether leaders are willing to legislate relief.
Congress has the power to act. Pass a law that removes PGST from food and fuel. If the president vetoes it, override the veto. That is what lawmakers were elected to do: create a government for the people, by the people, and of the people. Not a government where citizens pay too much so corporations can benefit.
If tax collections fall short, government must find other ways to balance the books. Debt for the sake of citizens is not a failure, it is responsibility. Better yet, tax the corporations who benefit from PGST to cover the cost. Stop pretending that taxing families into poverty is “economic development.”
The hypocrisy is clear. While 70% of Palauans earn $15,000 or less, lawmakers enjoy salaries of $50,000. They do not feel the same pressure as the families who struggle daily. So, who are they representing? Businesses or people?
Rebates may help in the short term, but they do not fix the system. Real leadership means lifting burdens, not shifting them. Stop the slogans. Stop the math games. Start governing with principle.
Everything for Everyone and Nothing for Ourselves. That is the principle of true leadership — and the only way Palauans will see real relief.
Your Humble Servant
Dudalm Kelulau
The Silent Majority