27 Aug 2007

Predictions of shortfall in American Samoa tax collection

10:53 am on 27 August 2007

An American Samoa Treasury report on government collections is predicting a 2 point 8 million US dollar shortfall in collections from excise taxes.

For the period up to June 30, all tax collection, except for individual taxes, was recording a shortfall.

The biggest drop was in excise taxes which was budgeted to raise $18.6 million.

Only $11.2 million was actually collected at the end of the second quarter.

At that rate of collection, excise taxes for the year would fall short by $3.6 million.

Corporate taxes were also coming under budget.

The only category of tax revenues keeping par with projections is individual taxes.

License and permits, fees and fines, rents and leases were also showing shortfalls.

A separate statement in spending by government departments shows that the Legislature the Fono was close to depleting its $5.9 million budget by the end of the Second quarter.

At that rate of spending, the Fono would overspend its budget by $600,000.