Page 9 - IB September 2024

Politics

LIVING COSTS TAKE CENTRE STAGE

IN PALAU DEBATE

By Kambes Kesolei

A day after the US contenders for the Presidency met in
a volatile televised debate this month, Palau’s Presidential
hopefuls, incumbent Surangel Whipps Jr and former President
Tommy Remengesau Jr, debated before a live and online
audience in Koror in a much more Pacific affair.
They presented their cases over almost three hours. And
from the outset, the rising cost of living was on the table.
Speaking first, President Surangel Whipps Jr emphasised his
understanding of the struggles faced by many Palauans, noting
he visited many homes before assuming office and has made
meeting economic challenges a priority since day one of his
presidency.
He highlighted his administration’s implementation of
comprehensive tax reforms last year and the US$890 million Incumbent Surangel Whipps Jr (left) and former President Tommy Remengesau Jr
at the debate. Photo: Kambes Kesolei
economic package secured under the second Compact review
agreement, which he claimed provided a strong foundation for “They’re asking us to run to make things better,”
mitigating the cost of living. Remengesau said on his candidacy.
“Tax reform and the Compact agreement are pivotal “From Kayangel all the way to the Southwest Islands,
policies that support our efforts to ease living expenses for people are finding it hard to keep up,” Remengesau noted,
Palauans,” Whipps asserted. citing job resignations with families selling their homes and
He also mentioned the new Palau Goods and Services relocating overseas as some of the consequences of the rising
Tax (PGST), which he says has facilitated increased social costs.
assistance and a US$3000 salary raise for government “We can’t afford to keep up with higher costs because of
employees. the PGST,” Remengesau added.
Whipps praised his working relationship with the Olbiil Era He said if elected again, he will address the “S” or the
Kelulau in enacting significant policies, including tax reforms “Services” part of the PGST, signalling that a total repeal of
and a minimum wage increase to US$5 per hour. the taxes is unlikely if he does win office.
“We’ve modernised the outdated tax code and closed many Remengesau said that services that the government
loopholes,” Whipps said. provides such as water, electricity, sewer, and
“We will persist in strengthening our nation, boosting the communications, should not be taxed, “because they are
economy, and enhancing health and education,” he added. fundamental government services”.
For his part, former President Tommy E. Remengesau Jr, He added that food and medicine should also be tax free.
who is seeking a fifth term, criticised the new PGST for Remengesau pledged to continue the social programs
shifting the tax burden onto ordinary citizens, saying big initiated under the PGST but make the payments more
businesses are not paying their fair share. regularly. He said he will continue the US$480 disbursements
for senior citizens and the child-raising subsidy, but on a
He opened by asking a rhetorical: “Tommy, what did you monthly basis rather than a one-off annual disbursement.
forget from your time in office? Why are you running again?” Remengesau vowed to maintain tax refunds under the PGST
He answered by saying he was running at the urging of for those earning less than US$30,000.
voters “because of the request of many people who signed Palauan voters will head to the polls on November 5 to
the election petition urging another run again, especially, the select their national leaders, including the President, Vice
grassroots who are themselves consumers and the ordinary President, and members of the Olbiil Era Kelulau (Senate and
wage earners. House of Delegates).

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