11 Mar 2011

Tax hike will restore American Samoa working hours, says governor

4:23 pm on 11 March 2011

The American Samoa governor, Togiola Tulafono, says once the wage tax bill is passed he will end the reduction in hours for public servants.

The measure, which would add two percentage points to income tax, has been approved by both houses and is awaiting the governor's sign off.

The governor's communications director Dr. Jacinta Galea'i says no decision has been made on just when full working hours will be restored for locally funded government employees.

The increase would be retroactive to the beginning of the year and be in place for one year.

It's expected to raise 3.7 million US dollars, while the cuts to work hours had been expected to save the government 3.2 million dollars a year.