The government is now letting you keep more of your pay.
Governor Lemanu Peleti Mauga has signed into law the bill that raises the excise tax on cigarettes and repeals the 2% wage tax.
The bill takes American Samoa’s wage taxes down to 4%, the rate workers paid before it was raised an additional 2% 13 years ago.
The original goal for the 2% tax was to collect money to pay for several years worth of LBJ Hospital’s unpaid workman’s compensation insurance coverage. After the debt was paid, then Governor Togiola Tulafono with Fono approval decided to keep the 2% wage tax and earmark it for hospital operations and the off-island medical referral program.
The bill to raise the tax on cigarettes and repeal the wage tax was introduced this year in the first regular session of the 37th legislature by Senator Magalei Logovii and Senator Utu Sila Poasa.
As approved by the Fono, the cigarette tax will increase from 33 cents to 36 cents per cigarette and the proceeds are assigned to fund LBJ Hospital operations. The allocation for the off-island referral program has been removed. The new law also repeals the 2% wage tax.
The bill provides an immediate effective date upon approval of the Governor.
Governor Lemanu’s signature was stamped April 8th, 2021.
There have not been any announcements from ASG about the increase on the excise tax for cigarettes.
