The American Samoa government has resubmitted a bill to hike the excise tax on miscellaneous items to the fono.
Lolo Matalasi Moliga at his State of the Territory address. Photo: RNZI / Monica Miller
The tax is currently at five percent.
Governor Lolo Matalasi Moliga said the territory's tax had not been changed for many years and was in need of updating and adjusting to address new economic realities.
Lolo said the current five percent rate was insufficient to meet the growing costs of providing critical government services.
The latest bill increases the tax from to eight percent with 75 percent of the revenue going to the General Fund.
The administration said $US1million will be appropriated for student financial aid and the remaining amount would be earmarked for repairs and renovations of school facilities.
The governor told Fono leaders that without the increase American Samoa would continue to fall behind in the funding of schools and education.
