27 Aug 2013

New tax proposal in American Samoa to be new cash cow

9:09 am on 27 August 2013

The American Samoa Government is developing a new tax proposal which administration officials say will become the new cash cow for the government.

The proposal unveiled at a cabinet meeting on Friday is a Gross Receipts Tax which will require all businesses, semi government authorities and non profit organisations, except for religious groups, to pay a 5 percent tax on all gross receipts.

The Treasurer Falema'o Pili says based on gross receipts of $800 million in the 2011 financial year, the proposed tax will generate $37 million annually in new revenues for the Government.

The Treasury says it has spent the last few months researching the numbers, as well as the advantages and disadvantages of the tax.

Falema'o says the Governor tasked his office to think outside the box in coming up with a new source of revenue and the Gross Receipts Tax is the answer.