11 Mar 2011

Income taxes in American Samoa will be back-paid

6:48 pm on 11 March 2011

A new income tax increase in American Samoa will be backdated to the start of the year.

The government is on the verge of signing off on a 2 percent rise - Governor Togiola Tulafono, who proposed the Bill, just has to sign it.

Our correspondent Monica Miller says the bill will be effective back to January 1st.

She says the government hasn't outlined yet how they'll collect the back taxes.

"Some people feel that because the government needs an immediate cash fusion what they might do is collect the accumulative increase from January once the bill is signed but there are others who say that what they might do is collect half now and then just wait til the people file their income taxes for next year to collect and then withhold the higher tax."

The 2 percent increase will be effective for one year - it's aimed at clearing some of the government's deficit.