1 Apr 2011

Public service job losses likely in American Samoa

1:58 pm on 1 April 2011

Job losses are looking more likely for public servants in American Samoa with the Fono deciding to defer tax hikes on alcohol and cigarettes.

The Fono will now adjourn tomorrow until July without passing revenue bills sent to it by the Governor Togiola Tulafono.

The governor said earlier this week that if the Fono fails to pass four revenue generating bills, jobs may go.

Our correspondent Monica Miller says an increase in income tax has been passed but today's hopes that another revenue raising bill would be passed have been dashed.

"It wasn't passed today because what the Senate decided to do was to return the bill which would hike the excise tax on beer, alcohol and cigarettes, to defer the bill to committee."

Monica Miller says there is now a widespread expectation of job cuts and she expects the Governor to make an announcement next week.