The Lolo Lemanu administration is making another attempt to change the computation of the excise tax on beer and alcohol.
The current formula which has been in place for decades, bases the duty on the reported value of beer and malt extract imports.
But Governor Lolo said this may be easily manipulated to reduce the amount of excise tax due to ASG, resulting in less money for the government’s coffers.
The administration is therefore proposing a flat rate based on the amount or volume of beer and malt extract imports instead of its stated value.
The governor said that the bill changes the calculation for the tax on beer and malt extract for easier enforcement.
A flat rate is proposed based on the volume of imports.
He said this will make it harder to manipulate the excise tax calculation thus making it a fairer tax.
For beer the proposed tax is changed from 190 percent to 35 cents per 12 fluid ounce and for all malt extract, the tax us 15 cents per 12 fluid oz instead of 80%.
The bill provides that the excise tax on beer and malt extract is to be deposited in the General Fund for repayment of the Series 2015 bonds.
Once the bonds have been paid off, the tax goes into the General Fund and be available for appropriation by the Fono.
A similar bill was submitted to the Fono in the second regular session.
