The Guam Chamber of Commerce is calling for a public hearing on Bill 11, which proposes a reduction in the Business Privilege Tax from 5% to 4%.  With the private sector struggling to survive, the Chamber argues this tax reduction would stimulate the economy and benefit consumers. 

"Without any type of additional help," commented Tae Oh, "I think the private industry is going to have a really rough time in the coming years." The Guam Chamber chairman says the private industry is suffering while government spending increases, as the chamber tracks a ‘dramatic’ number of businesses shutting down and reducing operations since the pandemic - at least 60 companies they know of right now. 

"We’ve been open with no customers and no tourists for many, many years. Now you see the full effects of that on island. You see a lot of businesses closing. You see prices haven’t actually come down," Oh said.

They believe that reducing the BPT would help revitalize the island's economy, paired with GovGuam fiscal responsibility. "I know that everyone assumes that private business owners are going to take that profit and pocket it," Oh continued, "but most of the businessowners I talk to all say the same thing: they want to take care of their employees. They want to pay them what they’re worth. They want to be able to stay competitive so they don’t start to lose their staff to GovGuam."

The BPT was raised to 5% in 2017. He says this was only supposed to be a temporary increase to offset expected federal tax cuts. But this tax increase is still in place today despite increased government spending and surplus, leaving the private sector and consumers to carry the burden.  

"The private industry, for years, have been trying to catch up with the government pay grade with all that 20% and 22% pay increases. GovGuam has been paying their employees a lot better than the private industry sector has been. We have an issue retaining our employees," he shared.

The Chamber is urging lawmakers to immediately hold a public hearing on Bill 11 to reduce the BPT and allow for open debate and community input.

In the meantime, as businesses struggle to survive Oh offered, "They don’t have the capital to improve their businesses and clean up some of the eyesores that everyone seems to mention out on the street."

The Chamber is focused on tourism recovery and is in talks with the Guam Visitors Bureau to aid in destination improvement.  "How are we going to start attracting all those businesses to start coming back to Guam if we’re already suffering? How are we going to attract them if there are so many retail outlets that are closed? How are we going to ask tourists to come here if there’s nothing to do here?" he said.