Palau will distribute tax refunds this week, though fewer funds will be disbursed compared to last year. 4,879 individuals will receive refunds, with 2,906 receiving a full refund and 1,973 receiving a fixed amount of $480.

The total refund amount has dropped to approximately $2.7 million, a decrease from the $3 million disbursed in 2024. The reduction is attributed to last year’s $60 biweekly salary increase for government employees, which moved about 100 workers into a higher tax bracket. The number of taxpayers earning over $15,000 rose from 1,850 in 2024 to 1,973 in 2025. As a result, the amount allocated to individuals receiving full refunds is now $1.77 million, while those in the higher bracket will receive a total of $947,000.

Of the recipients, 2,906 fall within the $15,000-and-below tax bracket, qualifying for refunds of up to 10% of their declared 2024 salary. The remaining 1,973 taxpayers, earning between $15,000 and $30,000, will receive the fixed $480 refund.

Meanwhile, senior citizens and individuals with disabilities who received a $480 social assistance payment last year will not receive those funds during this tax refund cycle. While the 2025 budget authorized the program, no funds were appropriated for distribution.

President Surangel Whipps Jr. said he submitted a bill to allocate the necessary funds during his inauguration.

“All our collections in all categories are above 30% of the estimated 20% per quarter,” Whipps said, urging lawmakers to act. “Don’t be afraid. We have enough funds—please appropriate them so we can give senior citizens what they are waiting for.”

Tax refunds will be distributed at the One-Stop-Shop across from Ernguul Park. Refunds for those earning $15,000 or less will be available today and tomorrow. Payments for individuals receiving the set $480 amount will be distributed at the same location on Feb. 27-28. (By: L.N. Reklai)