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HAGATNA, GUAM – As the 38th Guam Legislature commences discussions on the Fiscal Year 2026 budget for the Government of Guam, the Guam Chamber of Commerce continues to hold ground that one of the priorities of this process should be the reduction of Business Privilege Tax by 1 point. This means reducing the tax from 5% to 4%.
We would like to start by thanking our allied business organizations for collaborating with us to collectively express this consistent message. We are no longer going to accept decisions to increase our public sector expenditures on the backs of the private sector. In the past seven fiscal years, we have seen the government's budget balloon from around $700 million to nearly $1.4 billion, while our hospital environment continues to crumble, conditions of public infrastructure are questionable at best, and businesses still must face ludicrous licensing and permitting processes, where technology is nearly nonexistent.
It is time to reduce this BPT and provide the business community with some breathing room to reinvest in their operations, their employees, and other vital priorities. Many have done their part to support the government when the tax was increased, and now things must be reciprocated, especially as our island continues to rebound economically from the global pandemic.
We recognize that the budget process is complex, fast-paced, and demands long days and nights in the session hall, and we know to expect the unexpected. Over the next ten to twelve days, lawmakers will consider numerous amendments, from so-called "poison pill" provisions to messaging measures, from shifting funds between priorities to headline-grabbing proposals.
Our position remains firm: reduce the Business Privilege Tax by one percentage point. If necessary, implement the reduction in two stages. The first taking effect on October 1, 2025, and the second within the fiscal year, and clearly define this in the budget bill. This is the responsible course of action for our island's economic health.
The Guam Chamber of Commerce would like to thank Senator Shawn Gumataotao for championing the cause to reduce the BPT by 1 point. We also want to thank Senator Chris Duenas, the budget chairman, for prioritizing the BPT discussions during this budgetary process. Now let’s get it done.
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August 11, 2025
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