Guam has introduced legislation that would increase the tax discount given to cigarette wholesalers from 4 cents to 15 cents per pack to help offset the high costs of operating tobacco tax stamp machines now required under local law. The proposal comes after the Department of Revenue and Taxation began requiring wholesalers to produce and affix their own stamps to verify tax payments, with each machine costing nearly $200,000 and requiring additional staff, climate-controlled storage, and maintenance. Support for the measure was voiced by Western Sales Trading Company, which said it had to hire up to 10 employees and invest heavily in infrastructure to comply.
Data said the 3.75% discount is the proper balance between industry costs and government revenue collection. Previous audits by the Office of Public Accountability found that tobacco taxes were historically difficult to verify due to limited tracking of imports, with Public Auditor Benjamin Cruz noting that authorities still lack accurate data on tobacco shipments entering the territory.
