Lawmakers in American Samoa have put a hold on the government's 7-percent sales tax proposal, which would apply to all retails goods sold in the territory.
The government estimates it would collect about $US22 million a year from the tax, which was to become effective from next year.
Some businesses proposed raising the current 5-percent miscellaneous excise tax instead of implementing a sales tax, which they say is too high.
Senators agreed with private sector testimonies and voted not to address the sales tax bill.
For the current miscellaneous excise tax, senators increased it by another five percent to 10 percent.
Also included in provisions of the excise tax bill is a new tax for all imported sugary drinks, which the government had proposed but the private sector opposes as too high.
tax Photo: 123RF
