Guam Senate discusses BPT reduction proposal from 5% back to 4%

In a pivotal public hearing on July 7, 2025, Senator Christopher M. Duenas led discussions on the proposed restoration of the Business Privilege Tax (BPT) rate from 5% back to 4%. This move, known as Bill Bridal 11, aims to prioritize entrepreneurship and alleviate financial pressures on local businesses struggling in a challenging economic climate.

Chris Felix, a prominent local business owner, passionately testified about the dire circumstances many companies face. With 52 years of experience in the Guam market, Felix emphasized the need for the BPT reduction, stating, “It’s time to stand up and go back to the past. You made us a deal, and we stood by our end. I hope the government will stand by theirs.” He highlighted the struggles of maintaining operations amid a 60% drop in tourism and the burden of the current tax rate, which he argued has led to increased costs for consumers and stunted business growth.

Felix's testimony resonated with many in attendance, as he pointed out that the original increase to 5% was intended as a temporary measure during a fiscal crisis. He urged lawmakers to honor their commitment to revisit the tax rate, suggesting that a return to 4% could provide much-needed relief and stimulate economic recovery. “Why not try 4%? If you absolutely need it next year, let’s talk,” he proposed.

The hearing also included insights from the Guam Association, echoing Felix's sentiments and calling for a return to the original BPT rate. They argued that the prolonged 5% rate has become a permanent burden, adversely affecting both businesses and consumers. The association stressed that the government must learn to operate within its means rather than relying on increased taxation of the private sector.

As the hearing concluded, the discussions underscored a critical moment for Guam's economic future, with many stakeholders hopeful that the legislature will take decisive action to restore the BPT rate and support local businesses in their recovery efforts. The anticipated outcomes of this hearing could significantly impact the territory's economic landscape, as businesses await a decision that could either alleviate their burdens or prolong their struggles.