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Small business braves decline
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Posted on Dec 19 2000
A newly enacted tax break law aimed at attracting big investors in the Commonwealth won’t confer any benefits on truly small businesses in the Commonwealth, according to one small business person who has placed a serious bet on the future of the local economy.
While businesses along Beach Road and throughout the island have closed their doors in recent years, Remedios C. Lloyd has, within a month and a half, opened a new Garapan store, remodeled her Dandan outlet and moved a third store, Trinity’s, from its former Texas Road location to a site next to the Chalan Kanoa post office.
“I was glad to hear that some big investors in the CNMI will pay no taxes for 25 years because that will build our overall economy,” Ms. Lloyd said, “but the government also has to do something to help local businesses who are always expected to pay, not only taxes but a lot of fees.”
One particularly striking example, according to Ms. Lloyd, is the 17.25% excise tax that the CNMI charges on cosmetics, as opposed to 5% on nearly every imported item for resale. Cosmetics, as interpreted by the present law, include shampoo.
