Guam's governor has signed into law a bill that will temporarily increase taxes on the island, with the government's revenue suffocated by federal tax cuts.
Photo: 123RF
The territory's government has had to address a US$67 million fiscal shortfall this fiscal year, and a range of austerity measures have already been passed.
These included shortening the public sector's work week to 32 hours, delaying the start of the school year, and closing two fire stations and a police precinct.
The law, signed by Eddie Calvo on Friday, will increase business privilege tax by 25 percent for six months, and implement a 2 percent sales tax.
However, Mr Calvo said it was premature to rescind the austerity measures, and the new law still requires the government to find at least US$30 million in cost cuts.