A member of the American Samoan government's Revenue Task Force says 87 percent of local businesses do not pay taxes.
The revelation came at a hearing by the House Economic Development Committee and Budget and Appropriations Committee on a bill to establish a one percent alternative minimum business tax.
The executive assistant to the governor, Iulogologo Joseph Pereira, said only 13 percent of businesses had been paying taxes and contributing to the territory's economy.
Pago Pago, American Samoa Photo: Wikipedia
The Revenue Task Force reported the alternative minimum business tax would affect those businesses which have not been paying tax.
The government has said this avoidance was not illegal as long as the businesses can show they are not making a profit.
Meanwhile the Tax Office said the new tax would be on the gross sales a company makes.
