By By Tae S. Oh

Copyright guampdn

On Monday, Sept. 29, the 38th Guam Legislature will reconvene its session and on the agenda is a potential attempt to override the governor’s veto of Bill 44-38, the government of Guam’s fiscal year 2026 budget.

Beyond the budget itself, this legislation carries a critical provision for the private sector: a reduction in the business privilege tax from 5% to 4.5% on Oct. 1, 2025, and further to 4% on Oct. 1, 2026.

For years, the Guam Chamber of Commerce has advocated for the reduction of this tax, which was originally presented as a temporary measure. Yet for seven years, despite steady economic recovery, consistent government surplus, and a government budget that has nearly doubled in that time, the tax has remained in place.

Until now, the business community’s call for relief has gone unanswered, even ignored. We commend those senators who honored their commitment to include these BPT reductions in Bill 44-38. But the work is not yet finished.

As expected, Gov. Lou Leon Guerrero vetoed the measure, warning that lowering the BPT would gravely impact government operations, delay repairs at Guam Memorial Hospital, and even risk payless paydays. We have heard this rhetoric before; however, the record tells a different story.

In her seven years as governor, GMH infrastructure has deteriorated further into disrepair, vendor liabilities remain unpaid, and patient data breached, despite consistent pledges, not a single dollar has been allocated toward GMH repairs. The same holds for other agencies, where budgets have grown, yet basic services remain under strain.

More importantly, recent audits by the Office of Public Accountability highlight another real problem. The OPA identified $42 million in financial impacts for fiscal years 2022 and 2023 alone, including:

$12.8 million in unrealized revenues that should have been collected.$22.5 million in BPT-related deficiencies, from weak collections to undocumented exemptions and lapses in oversight of military construction projects.Nearly $20 million in questionable costs, including COVID-19 quarantine facility operations and $2 million in consultant services for a new hospital.Additional impacts from overpayments, mismanagement of relief funds, and improper government credit card use.

The solution to the government’s challenges lies in improving financial management and prioritizing the collection of revenues owed, rather than continuing to burden the people of Guam with higher taxes.

With consistent surpluses, evidence of administrative leakage, and clear signs of mismanagement, it is time to shift the burden away from the private sector. Businesses carried the heaviest weight during the pandemic, as many closed their doors, and thousands of private sector employees lost their jobs. They deserve meaningful relief.

Reducing the BPT is more than just tax relief. It is a statement that Guam values its private sector as the engine of growth. Lowering the burden on businesses allows them to reinvest in jobs, wages, and expansion, which would create ripple effects that strengthen our economy and, ultimately, government revenues.

For these reasons, we call on senators to override Bill 44-38 and deliver on this overdue promise. Doing so is not only the right thing to do for the business community, but is essential to building a stronger, more resilient Guam.