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PAGO PAGO, American Samoa (September 7, 2001 – Radio Australia)---Civil servants in American Samoa will receive a pay increase if a proposed sales tax of seven percent is approved by the Fono (legislature).

Senator Faafetai Lefiti, in a bill he introduced last week, recommends that the new tax be applied to all goods sold at retail outlets in the territory.

The bill would require all retailers to charge the tax, which would be collected by the government Treasurer's Office at the end of each quarter.

Proceeds would be earmarked for the U.S. territory’s Economic Stabilization and Emergency Fund, the LBJ Hospital, the Port Administration and the Parks and Recreation Administration.

Also, one cent out of every tax dollar collected would be earmarked for an across-the-board pay increase to government employees.

For additional reports from Radio Australia, go to PACIFIC ISLANDS REPORT News/Information Links: Radio/TV News/Radio Australia.

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