28 Mar 2011

A big jump in tax on luxuries is closer in American Samoa

6:38 pm on 28 March 2011

The American Samoa House of Representatives has passed the administration's bill for huge increases in the excise tax on alcohol and cigarettes.

The government projects the bill will raise about 3 million US dollars as it continues its struggle to balance the budget.

The measure would hike the tax on beer from 190 percent to 250 percent.

For other alcohol the tax increase is 50 percent, while the higher penalty on cigarettes is just under that.

The bill still needs the approval of the Senate.