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Excise Tax

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 GoodsExcise 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 Water25% 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