PALIKIR, POHNPEI. On March 26, 2021, the FSM Congress passed Congressional Bill CB21-336. If it becomes law, it would allow a gross revenue tax deduction for businesses contributing towards its employees’ MiCare health insurance plan.
Businesses in the nation are currently allowed the following expenses to be deducted from its taxable gross revenues: wages, salaries, and benefits for employees; social security contributions for employees; cost of utilities; and communication expenses.
Senator Isaac V. Figir, who introduced the bill, expressed his sentiment in a statement saying, “this tax deduction would be an incentive for businesses to contribute towards its employees healthcare plan; a benefit for private sector employees across this nation, and a benefit to the nation’s health insurance plan.”
Representatives of the FSM Department of Finance and MiCare who testified during the public hearing on the bill, have also expressed agreement on the intent of the bill as outlined in Standing Committee Report SCR21-85. Certain state entities, as well as members of the private sector communities also expressed support for the bill.
Congress enacted this bill as part of its ongoing efforts to support private sector development and economic recovery post-COVID across this nation, particularly during this harsh global pandemic. As part of the Nation’s efforts for economic recovery under the supplemental budget, approved by Congress, FSM COVID-19 Assistance is appropriated in the amount of $150,000 for the State of Chuuk, $120,000 for the State of Yap, and $80,000 for the State of Kosrae.
Other recent initiatives include the expansion of the reliefs under the Tourism Mitigation Fund for eligible and affected businesses not directly related to the tourism sector, as well as recent appropriations of $25,000 for each state’s Chamber of Commerce under CB21-388, CD4.
For more information on this, and other initiatives of the FSM Congress, please contact the Congress Public Information Office, or visit the FSM Congress website at www.cfsm.gov.fm.
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