Torres tells Legislature to be creative, give incentives to big corporations

Ralph DLG Torres

Gov. Ralph DLG Torres said Friday that the Legislature should be creative and instead of increasing taxes they should come up with a legislation to give incentives to existing businesses, and to big corporations in order for them to invest in the CNMI.

Torres, in response to a question during a KKMP press briefing, said it is not just increasing taxes and that the Legislature should look into how the CNMI to be business-friendly, how to give incentives to big corporations that come in, and how to give incentives to new and existing airlines.

House of Representatives Ways and Means Committee chair Rep. Donald M. Manglona (D-Saipan) disclosed in discussing the budget bill during Saturday’s session that the committee had decided to add two provisions that would increase taxes just for the Fiscal Year 2023 to address the funding shortfall for healthcare particularly the medical referral.

Manglona, who is the author of the budget bill, said the committee proposed to increase taxes on tobacco and sugar sweetened beverages for the fiscal year.

But Torres said Friday that he has not seen the language in the budget bill that refers to such proposal to increase taxes.

Torres said just increasing taxes is not going to help as much, as what the CNMI need is to increase the economy.

“And by doing that we should start giving incentives to airlines,” said the governor, adding increasing taxes is one step to increase the revenue, however, the money still circulates in the CNMI.

Torres said giving an incentive to big corporation to come in, that will bring in new money, and perhaps create new and additional jobs.

“That’s one that I ask the Legislature, to please look into giving tax incentives to new airline, or even existing airlines if they are able to add additional flights. Or new hotels, new restaurants, something in that matter that bring in new revenue and create jobs to the CNMI,” he said.

The governor noted the administration recently launched the $10-million Building Optimism, Opportunities and Stability Together or BOOST Program.

He said BOOST Program will create a whole new section in the economy here in the CNMI.

“That’s what I encourage the Legislature. Instead of just increasing taxes, and then say, oh this is supported by the administration,” Torres said.

The governor said the Legislature should create something that they can say this is coming from the House, and that he will congratulate them.

“Because I wish I can just go out and just draw an incentive to new airlines or existing airlines with additional flights,” he said.

Torres urged the Legislature to give incentive to corporation so that they can invest here in the CNMI.

“Because every dollar of investment equates back to our community— new employment, higher salary, I mean new product for other business to participate,” he said.

Torres said other investors around the region and nation would look into the CNMI and find that this is the time to invest.

He said United Airlines is now flying back the Japan market and Marianas Southern Airways is not only a new airline, but it has new airplanes.

“For the company to have four or five airplanes, yet all those airplanes are on the way here to the CNMI to service the Marianas, that’s a great and huge accomplishment for all of us to be right in the first airplane,” he said.

Torres said it just show that the CNMI needs the business partners and that there is a need to give incentives to them.

He congratulated Marianas Southern Airways for officially launching flights to all three islands, Saipan-Tinian, Saipan-Rota, and Saipan-Guam.

The governor asked residents to be patient as the new airline continues to learn about the region, the travel schedules, and travel priorities and so forth.

Torres said Marianas Southern Airways has very good intention and the right partners.

He looks forward for their additional business proposal in bringing in more tourists from other countries to add into the diversification of the tourist destination here in the CNMI.