5 May 2008

Tuna plant in American Samoa wants special tax deal

10:56 am on 5 May 2008

In American Samoa, Star Kist Samoa wants the government to lower the tax rates it's now paying on profits made from its local tuna canning plant.

It is proposing a special one year tax structure, as its current tax exemption agreement comes to an end.

It says the proposed agreement would make it possible for Star Kist to remain in business.

Star Kist is proposing that it pay 20 percent on profits of up to 5 US dollars million, 10 percent for income of between 5 and 10 million and 5 percent for profits over $10 million.

Star Kist tax exemptions are tied to employment levels and investment in its infrastructure.

And unlike previous agreements where Star Kist commits to make capital improvement investments, the cannery says it cannot agree to capital investments on its plant as part of the tax negotiations.