14 Feb 2017

American Samoa looks at sales tax

11:11 am on 14 February 2017

American Samoa Treasurer Ueligitone Tonumaipe'a says a sales tax would be an effective way of raising government revenues.

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Photo: 123rf

Facing the Senate during his confirmation last week he said the sale tax may come before the Fono soon and he believes it's a fairer tax than the wage tax which only workers have to pay.

Mr Tonumaipe'a said if a person wanted to eats pisupo he can pay the tax for a pisupo vs a lower tax for a can of fish.

The treasurer was responding to a question from Senator Misaalefua Hudson for his opinion on a sales tax to shore up government revenues.

During presentations to the Chamber of Commerce last year, former Tax Manager Richard Jimmerson, discussed at length plans by the administration to introduce a sales tax.

Some senators pointed to problems that the government encountered with the sales tax collection in the past when it was in place.

Mr Tonumaipe'a said new technology now makes it possible for the government to document each transaction a store makes.

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