How will the administration collect the 7% sales tax and what guarantees can it give that the collection will be better than the last time we had a sales tax?
The collection method for the sales tax was one of the questions posed by the Chairman of the Senate Budget and Appropriations Committee, Senator Magalei Logovii to the ASG Revenue Task Force at a hearing on the 7% sales tax bill and the bill to remove the 5% excise tax on imports for resale.
The Chairman told members of the ASG Revenue Task Force that after thorough review the measure will be passed.
But he asked what happens when the Fono approves the bills and the task force is still trying to decide how to collect the new taxes.
He said collection was a problem when the territory first had a sales tax.
Treasurer Ueligitione Tonumaipe’a said they are still looking for the most suitable and effective collection system.
He mentioned an off island company demonstrated one system for their team.
Deputy Treasurer and Acting Chief of Customs, Keith Gebauer, told senators the Task Force has decided to go with a computerized system which would allow the Tax Office to access sales information from retailers and vendors.
Senator Magalei said he was glad to hear the Task Force has pinned down a collection method for the sales tax and he doesn’t doubt that the Senate will endorse the proposed bills.
While the question and answer exchage between Magalei and Gebauer was in the English language, Senate President Gaoteote Palaie said discussion of bills in the Senate chamber should be bilingual as this was the house of traditional leaders who mostly speak Samoan.
He said, “After all, if only 4 Senators understand the exchange between the member of the Task Force and the Chairman, how will the rest decide when it’s time to vote on the bills, if they don’t understand what’s being said?”
