A major construction company operating in American Samoa, Fletcher Construction, has opposed a measure to levy a 2-percent gross tax on construction projects grossing more than 150,000 U.S dollars.
The company's local manager, Dean Hudson, says the legislation, which was introduced in the Senate last week, will deter economic development in the territory.
According to Mr Hudson a tax on contracts will only increase the costs of construction and dilute the funding available for infrastructure development as contractors will inevitably build the tax into their pricing.
Revenues collected from the proposed tax will go into an account earmarked for rubbish collection and disposal in the territory.
