by Alonzo Kahalic /alkahalic6801@gmail.com
Upholding Equity: Examining the Palau Goods and Services Tax Policy
President Remeliik in 1981 asked all of us to remember, “As of old, our people must be asked to perform their duties to their communities and their government. I call upon you to support your government. I call upon you to show in words and DEEDS your loyalty to the Republic. And, when required, I ASK YOU TO STAND UP WITHOUT FEAR AND TELL YOUR GOVERNMENT WHAT YOU WANT DONE.” I come today to tell my government what I want done.
The Palau Goods and Service Tax (PGST) better known as the Palau Government Stress Tax plays a crucial role in financing public services and initiatives. However, a notable aspect of the PGST policy is that it provides refunds exclusively to Palauan taxpayers, overlooking non-Palauans who also contribute through taxation. This preference for Palauans in tax refunds raises questions about fairness and equality under the law.
The Palauan Constitution, particularly ARTICLE IV (4) FUNDAMENTAL RIGHTS, Section 5, affirms the principle of equality under the law and guarantees equal protection for all individuals. While the constitution allows for preferential treatment of citizens in certain circumstances, such as protecting vulnerable groups, it does not condone unfair treatment in legislative or executive actions. Therefore, the exclusive refunding of PGST to Palauan taxpayers raises concerns about potential discrimination based on nationality.
The preferential treatment of Palauans in receiving PGST refunds is often justified as being in the best interest of Palauan citizens and the nation as a whole. However, this rationale neglects the contributions of non-Palauan residents who work and pay taxes within the country. Denying tax refunds to individuals solely based on their nationality goes against the principles of fairness and equality mentioned in the Palauan Constitution.
By prioritizing the welfare of Palauan citizens over non-citizens in tax refund distribution, the government’s action appears to be driven more by political considerations than by principles of fairness and equity. This approach undermines the fundamental rights of all individuals to equal protection under the law, irrespective of their nationality or citizenship status. It perpetuates a system of inequality that disadvantages certain groups based on arbitrary distinctions rather than merit or need.
The PGST policy’s failure to provide tax refunds to non-Palauan taxpayers who contribute to the country’s economy and development reflects a shortsighted approach to governance. It not only fosters resentment and division within society but also undermines Palau’s reputation as a fair and equitable nation. To truly uphold the principles of fairness and equality enshrined in the constitution, the government must ensure that all individuals, regardless of nationality, receive equal treatment under the law, including access to tax refunds and benefits derived from public funds. It’s very interesting that some leaders preach the gospel when it comes to when they go to church but do not even consider, “James 2:14-17, What good is it, my brothers and sisters, if someone claims to have faith but has no deeds? Can such faith save them? Suppose a brother or a sister is without clothes and daily food. If one of you [leaders] says to them, “Go in peace; keep warm and well fed,” but does nothing about their physical needs, what good is it? In the same way, faith by itself, if it is not accompanied by action, is dead.” If we value the constitutions preamble that says, “We venture into the future with full reliance on our own efforts and the divine guidance of Almighty God.” Then let’s act as believers in deeds and not only in words. And be reminded of Philippians 2:3 “DO NOTHING OUT OF SELFISH AMBITION OR VAIN CONCEIT. RATHER, IN HUMILITY VALUE OTHERS ABOVE YOURSELVES”
In conclusion, the exclusive refunding of PGST to Palauan taxpayers represents a departure from the principles of fairness and equality enshrined in the Palauan Constitution. By prioritizing the interests of one group over others based on nationality, the government undermines the foundational values of democracy and justice. To build a truly inclusive society, policymakers must recognize and address the inherent inequalities perpetuated by such discriminatory policies. Only through equitable treatment and respect for the rights of all individuals can Palau fulfill its promise of a just and prosperous future for all.
Your Humble Servant, Al Kahalic