Introduce “excise tax” on certain goods imported to or manufactured in Palau. Excise tax will replace current taxes on alcohol and tobacco products as well as a number of other products (such as bottled water).
| Excisable Goods | Excise Tax Rate |
| Carbonated Soft drinks | $0.10 per 12 fluid ounces or fractional part thereof. |
| Beer | $0.03 per fluid ounce |
| Liquor | $0.30 per fluid ounce |
| Grape or other fruit-based wine | $0.20 per fluid ounce or metric equivalent rounded to the next |
| Wine coolores or cooking wines with a recognized alcohol content | $0.05 per fluid ounce or metric equivalent rounded to the next ounce. |
| All other alcoholic beverage products, including liquors, sake and alcohol products without grape or fruit base | $0.30 per fluid ounce or metric equivalent rounded to the next ounce |
| Vehicles and vehicle chassis | $250 a partial vehicle that constitutes more than 25% of a vehicle’s composition, as determined by the Division of Customs, is subject to this rate of tax |
| Bottled Water | 25% of excisable value |
| Cigarettes | $5.00 per 0.017 kg, and packs of cigarettes weighing less than 0.017 kg are taxed rate of $5.00 |
| Other tobacco products | $5.00 per 0.017 kg |