On selective tax break

The proposed legislation to establish a Free Trade Zone here would grant tax breaks to investors in the FTZ with certain criteria. It is a good intention when viewed from the standpoint of infusing half-cocked political solutions to investment schemes.

This proposal brings into focus the fate of other industries here who have faithfully served these island in terms of wealth and jobs creation. It seems the proposed benefits would penalize current industries premised on time alone. In other words, they won’t get the same tax breaks for being here first. Or is this an oversight?

We seem to have forgotten the good old faithfuls–hotel, construction, apparel, and other investors here–who have stood by our side in both good and bad times diligently working the clock to continue contributing to the coffers of the local government. What is troubling in all these is the attitude of blatant disregard for their role and contributions here over the last two to three decades. Don’t they deserve equal tax breaks too?

As though the assaults of the current crisis aren’t enough where we haven’t done anything positive to assist them muddle through these difficult times, we again trumpet with arrogance their exclusion as investors in these isles from such incentive. This is the most damaging aspect of the proposed FTZ where we seem to demonstrate that we care less about current investors in hopes of luring others. It’s the usual political paradigm of counting fish out in the open waters while ignoring fish in boat.

In other words, if we can’t take care of current investors, what’s our chances of success of doing any better with future investors?

It goes without saying that the NMI needs to get its act together in that while we may convince ourselves of luring more investors with the FTZ, we may have done the exact opposite with discouraging policies that only frighten future investors to have second thoughts about investing in the CNMI. Definitely, a uniform policy on tax breaks is the very aspect that would encourage new investors to come to the islands while allowing current investors to engage in business expansion.

And if the CNMI really wants to encourage lasting investments here, then it must also resolve another aspect that sends chills to prospective investors: the current controversy on a proposed federal takeover of minimum wage and immigration control. In short, the twin-towers of disinvestment is found in unstable and constantly shifting federal policy often imposed without the sentiment of the local governance fueled by ill-conceived investment policies from within. We strongly recommend that the proposed FTZ embraces both current and future investors. It would trumpet a simple message of stability in policy for one and all. Si Yuus Maase` yan ghilisow!