17 May 2011

Audit office in American Samoa recommends study on stamps of tobacco products

11:09 am on 17 May 2011

The Territorial Audit Office in American Samoa has recommended a study be conducted on the feasibility and cost effectiveness of selling stamps to vendors to be put on tobacco products sold in the territory.

The recommendation has been made over concerns that many tobacco products are not being declared and taxed because they are easily concealed when brought into the territory.

The audit office says due to the increased risks associated with tobacco products, it is apparent that the Customs division does not have sufficient controls to ensure full taxation of the revenue source.

The Government Treasurer, Magalei Logovi'i, agrees with the recommendation of selling stamps to vendors.

He says this practice is carried out in most of the states in the United States as well as several foreign countries.