The Federated States of Micronesia’s (FSM) push for nationwide tax reform took a step forward on November 21, as Vice President Aren B. Palik and the National Task Force on Tax Reform held a series of formal meetings with Kosrae’s political leaders and stakeholders.
The delegation met first with Governor Tulensa W. Palik and Lt. Governor Arthy G. Nena to outline progress on reform proposals, stressing the need for close cooperation between national and state authorities.
A subsequent meeting with Speaker Semeon J. Phillip and members of the Kosrae State Legislature focused on the importance of cross-government partnerships and transparent communication as reforms progress.
The delegation later briefed leaders from the Executive, Judiciary, Legislature and private sector on key initiatives, including the National Consumption Duty Bill, plans to replace the Gross Revenue Tax with a Net Profits Tax, a possible Value Added Tax, and updates on digital modernization of the tax system.
Speaker Phillip welcomed the discussions and reaffirmed Kosrae’s support, while Vice President Palik thanked local leaders for their input and reiterated the national government’s commitment to building a fair and sustainable tax system.
