The excise tax on soda and cigarettes will be increased, if a bill introduced by Senator Magalei Logovii is approved by the House and Senate and signed into law by the Governor.
The tax on a 12 oz. can of soda would increase from 15 cents to 30 cents, while the excise tax for cigarettes and other tobacco products would be hiked from 36 cents per cigarette to 51 cents.
According to the bill’s preamble, the American Samoa Government has identified a significant need to diversify and strengthen local revenue streams, particularly as federal subsidies, and one time grants decline in Fiscal Year 2026.
It says, “Recent quarterly financial quarterly reports for FY2026 show that, while corporate tax collections have occasionally exceeded projections, individual income tax and other General Fund revenues have seen shortfalls, necessitating new stable sources of internal revenue. The Executive Branch has recognized that current budget ceilings require more aggressive local revenue generating measures to protect essential public services and government jobs without increasing the tax burden on basic necessitates.”
The bill also refers to smoking being a leading cause of preventable deaths in the Pacific with localized smoking rates among men significantly exceeding regional averages and placing an undue burden on the Lyndon B. Johnson Tropical Medical Center.
